European Stocks Slide Amid Escalating Middle East Tensions

European stocks slipped on Tuesday as oil prices and bond yields surged due to concerns over escalating Middle East tensions. The pan-European STOXX 600 index fell 0.5% to 652.94 points, marking its fifth consecutive session of losses.

The rise in crude oil prices was led by Brent crude climbing to around $90 a barrel, while natural gas prices rose 0.8% to $2.7 amid concerns over disrupted energy supplies. This has contributed to inflation concerns and higher operating expenses for businesses.

Technology stocks were hit the hardest, with a 1.8% decline, driven by weaker-than-expected core profit and communications unit orders from Huber+Suhner. Basic resources also fell 1%, tracking lower gold prices as rising Treasury yields dampened demand.

Euro zone long-dated bond yields reached multi-year highs, with Germany's 10-year Bund yield reaching its highest since 2011 and France's 10-year yield hitting a 16-year peak. This is due to concerns over prolonged Middle East conflict driving inflation via higher energy prices and increasing defence-related borrowing.