Oil Price Surge Fuels ECB Rate Hike Bets Amid Inflation Fears

European shares slipped on Monday as rising oil prices fueled inflation concerns and expectations of an ECB rate hike.

The pan-European STOXX 600 index was down 0.1% at 649.17 points, while Switzerland's benchmark index dropped by a more significant 1.2%

Energy stocks, however, rose 1.2% as Brent crude prices jumped on renewed geopolitical fears and worries about prolonged supply disruptions.

The higher oil prices have raised concerns that increasing energy costs could push inflation above the ECB's target of 2%, leading markets to price in a 25 basis point hike at the central bank meeting this week.