Europe Stocks Dip as US-Iran Tensions Fuel Oil Price Surge

European stock markets opened flat on Monday after US-Iran military strikes pushed oil prices and bond yields higher. The pan-European STOXX 600 index was trading at around 655 points by 0712 GMT, with energy stocks rising 0.6% as Brent crude hit $90.70 a barrel.

The uptick in oil prices was driven by the US military's strike on two missile launchers on Iran's Larak Island in the Strait of Hormuz on Sunday. In response, Tehran launched attacks on two US air bases in Jordan, according to Iranian media.

Germany's DAX index dropped 0.5% ahead of inflation data from the euro zone's largest economy, which could provide insight into the European Central Bank's rate path. This week will also see key releases including Euro zone inflation figures and US payrolls data.