London: European shares edged lower on Monday as escalating tensions in the Middle East pushed oil prices above US$90 a barrel, raising concerns about inflation and economic growth.
The pan-European STOXX 600 index fell 0.2 per cent in early trading.
Oil prices climbed after the conflict between the United States and Iran intensified and concerns grew over shipping through the Strait of Hormuz. Brent crude rose above US$90 a barrel for the first time in a month.
The rise in oil prices lifted energy stocks, with the sector gaining 1.4 per cent.
Travel and leisure shares fell 1.3 per cent, with Ryanair dropping 4.6 per cent after reporting a 34 per cent decline in first-quarter profit, citing higher fuel costs and lower fares.
Technology stocks rose 0.4 per cent as investors looked ahead to earnings from major US technology companies, which are expected to provide fresh clues on the sustainability of the AI-driven market rally.
Investors are also focusing on the European Central Bank's policy meeting later this week, where interest rates are widely expected to remain unchanged.