European Stocks Slide on Rising Oil Prices and Inflation Worries

European stock markets fell on Tuesday as rising oil prices fueled concerns about inflation and supply disruptions due to the ongoing Middle East conflict. The pan-European STOXX 600 index dropped by 0.2% to 648.41 points, while Germany's DAX slipped 0.3%, London's FTSE remained flat, and France's CAC 40 declined 0.4%. These losses follow a relatively quiet session on Monday due to the US public holiday.

The increase in oil prices was driven by Iran's threat to retaliate against any new attacks by targeting energy infrastructure across the Gulf, including US oil and gas interests. Brent crude futures traded at $98.5 per barrel. This surge in oil prices has reignited inflation worries among investors.

Novartis shares plummeted 8.8% after the Swiss pharmaceutical company announced that its del-desiran drug for myotonic dystrophy failed to meet its primary endpoint in late-stage testing. This is the second recent setback for Novartis, following a failed trial of its experimental cholesterol drug pelacarsen.