Flat Markets Despite Oil Price Surge and ECB Rate Hike Expectations

European stock markets closed flat on Monday as rising oil prices fueled inflation concerns. The pan-European STOXX 600 ended at 649.9 points.

The Swiss main index dropped 0.8% and Germany's DAX fell 0.2%. Novartis shares plummeted 3.2% after its cholesterol drug failed to reduce the risk of heart attack and stroke in a clinical trial.

Energy stocks rose 1.2%, tracking higher oil prices, which hovered near six-week highs at around $100 a barrel. Brent crude futures were boosted by concerns over supply disruptions due to strikes on vessels in the Strait of Hormuz.

The European Central Bank is expected to raise interest rates this week, with Deutsche Bank predicting another 25 basis point increase in December following September's move.