European Stocks Slide as Oil Prices Surge Amid US-Iran Tensions

European stocks declined on Monday as rising oil prices following fresh U.S.-Iran attacks fueled inflation concerns and reinforced expectations that the European Central Bank could raise interest rates later this week.

The pan-European STOXX 600 fell 0.1% to 649.17 points by 0711 GMT, while the Swiss main index dropped 1.2%. Energy stocks, however, advanced 1.2%, tracking higher oil prices.

Brent crude futures rose more than $1 a barrel as tit-for-tat strikes between the U.S. and Iran on vessels sailing in the Strait of Hormuz heightened concerns of a prolonged supply disruption.