Euro Stocks Falter Amid Oil Price Surge and ECB Rate Hike Fears

European stocks experienced a subdued start to the week, weighed down by concerns over inflation and potential interest rate hikes. The pan-European STOXX 600 index fell 0.1% to 649.17 points by 0711 GMT.

The Swiss market underperformed, with its benchmark index dropping 1.2%, while Germany's DAX remained broadly flat.

Energy stocks bucked the trend, rising 1.2% as oil prices surged due to tensions in the Strait of Hormuz and other areas, which heightened fears of a prolonged disruption to oil supplies.

The jump in energy prices has reignited concerns about inflation, potentially putting pressure on central banks to maintain or tighten monetary policy.