European Stocks Tumble Amid Soaring Oil Prices and Bond Yields

European stock markets slid on Tuesday as crude oil prices surged due to rising tensions between the US and Iran. The pan-European STOXX 600 index fell by 0.5% to 652.94 points, marking its fifth consecutive session of losses.

The escalation in Middle East conflicts has led to higher energy prices, with Brent crude reaching around $90 a barrel. This is a cause for concern for Europe, which relies heavily on energy imports and is vulnerable to supply disruptions.

Natural gas prices also rose by 0.8% to $2.7 as markets focused on whether Europe can replenish its gas storage at reasonable prices ahead of winter. Basic resources fell by 1%, tracking lower gold prices due to rising Treasury yields, which dampened demand for the bullion metal.

Bond yields in the eurozone hit multi-year highs as investors feared a prolonged Middle East conflict could drive inflation via higher energy prices and increase defense-related borrowing. Germany's 10-year Bund yield reached its highest since 2011, while France's 10-year yield hit a 16-year peak.