Europe Shares Fall as Inflation Fears Outweigh Business Survey Gains

European shares fell into negative territory by midday Wednesday as inflation concerns outweighed positive flash business survey readings in the eurozone and a weaker oil price driven by hopes of talks between the US and Iran that could see the Strait of Hormuz reopen.

The pan-regional Stoxx 600 index dropped 0.24% to 641 at 1036 GMT with all major bourses higher.

Brent crude was down 0.4% to $98.85 a barrel, still far from the $72 level before the US and Israel started their conflict on Iran and Lebanon in late February.

Iran has reportedly been negotiating with the US through a Qatari mediator in New York, with conditions including a halt to what it calls US 'acts of aggression', an end to the naval blockade and economic warfare, and the release of Iranian assets.