European Stocks Slide Amid Middle East Tensions and Surging Oil Prices

European stock markets slipped lower on Tuesday as oil prices surged and bond yields rose due to Middle East tensions. The pan-European STOXX 600 index was down 0.5% at 652.94 points, marking a fifth consecutive session of losses.

The increase in crude oil prices, which climbed to around $90 a barrel, weighed on European markets as the region remains heavily reliant on energy imports. This has led to concerns that escalating tensions between the US and Iran could disrupt supply and drive up fuel costs, feeding inflation and raising operating expenses for businesses.

Natural gas prices rose 0.8% to $2.7 amid worries about renewed US-Iran tensions affecting energy supplies. Technology stocks were among the hardest hit, falling 1.8%, after Huber+Suhner slid 5.7% following weaker-than-expected core profit and communications unit orders.

Germany's 10-year Bund yield reached its highest since 2011, while France's 10-year yield hit a 16-year peak as markets focused on the prospect of higher government spending across Europe and rising inflation concerns.