European Shares Slide Amid US-Iran Tensions and Inflation Fears

European shares declined on Monday as crude prices rose following another round of reciprocal strikes between the US and Iran, fueling worries about inflation. The continent-wide STOXX 600 index slipped by 0.1% to 649.98 points by 0850 GMT.

The slide in European equities was largely driven by concerns over public finances ahead of France's presidential contest, which have already pushed French shares to their weakest level in two months last week.

Energy companies, however, gained 1.2%, mirroring the uptick in oil prices. Brent futures climbed more than $1 per barrel as repeated attacks by US and Iranian forces on ships in the Strait of Hormuz and nearby waters intensified fears of extended supply interruptions.