European Stocks Tumble as Oil Prices Near $100 Amid Mideast Tensions

European stock markets retreated on Wednesday as oil prices hovered near $100 per barrel, fueled by ongoing tensions in the Middle East and rising inflation concerns.

The pan-European STOXX 600 index fell 0.4% to 646.84 points, while Germany's DAX dropped 0.5%, London's FTSE lost 0.2%, and France's CAC 40 slipped 0.6%

The conflict in the Middle East escalated after Iranian-backed Houthi forces launched strikes on several Saudi cities, drawing a key US ally into the war.

The surge in oil prices has reignited inflation concerns, leading traders to expect the European Central Bank (ECB) to raise interest rates on Thursday, ahead of potentially market-moving US inflation data later this week.