European Stocks Open Lower Amid US-Iran Tensions

European stocks opened lower on Monday as fresh US-Iran military strikes fueled an oil price rally and pushed up bond yields. The STOXX 600 index was flat at around 655 points by 0712 GMT, with energy stocks rising 0.6% in line with a more than 2% jump in Brent crude to $90.70 per barrel.

The US forces struck two missile launchers on Iran's Larak Island in the Strait of Hormuz on Sunday, prompting Tehran to launch attacks on two US air bases in Jordan, according to Iranian media reports. This was the first known US military action against Iran since late July.

Germany's DAX dropped 0.5% ahead of inflation data from the euro zone's largest economy, which could offer insight into the European Central Bank's rate path. The STOXX 600 is still on track for a fifth straight monthly gain.