Oil Price Surge Sends European Markets into Decline

European stock markets declined on Tuesday as rising oil prices fueled inflation concerns and renewed fears over energy supplies amid escalating tensions in the Middle East.

The pan-European STOXX 600 fell 0.2% to 648.41 points by 0705 GMT, while Germany's DAX declined 0.3%, France's CAC 40 slipped 0.4%, and London's FTSE 100 was broadly flat.

The surge in oil prices, with Brent crude futures trading around $98.50 a barrel, has heightened concerns that a prolonged conflict could intensify inflationary pressures and complicate the outlook for interest-rate cuts by major central banks.

Novartis shares plummeted 8.8% after the company reported disappointing results from two late-stage trials of its experimental treatments, del-desiran and pelacarsen.