BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks were notably lower on Tuesday as escalating Middle East tensions spooked markets.
Eurozone, U.S. and U.K. 10-year bond yields rose to eight-week highs as crude oil futures scaled one-month high after the announcement of a renewed U.S. blockade of Iranian ports near the Strait of Hormuz.
Markets now await the June U.S. inflation data for cues on how it may impact the Federal Reserve's monetary policy.
Money markets are pricing in nearly a 50 percent probability of a Federal Reserve rate hike in July after Governor Christopher Waller expressed caution about inflation and said a hot core inflation reading this week could prompt the FOMC to consider tightening policy at its late-July meeting.
The pan-European STOXX 600 index fell 0.7 percent to 636.38 after finishing marginally lower on Monday.
The German DAX and the U.K.'s FTSE 100 both dipped around 0.6 percent, while France's CAC 40 was down 0.9 percent.
Swiss engineering firm ABB fell about 1 percent after announcing it has made an investment in the start-up Gridcog for an undisclosed sum.
Norway's DNB Bank tumbled 3.3 percent in Oslo after reporting a slightly lower second-quarter profit.
Sweden's Ericsson plummeted 8 percent after it warned of weaker profitability in its networks business.
Emerging markets assets manager Ashmore lost 2.7 percent in London despite reporting quarterly net flows that came in ahead of expectations.
Likewise, British Land Company declined 1.5 percent despite reporting strong leasing activity during the first quarter of its fiscal year 2027.
Energy giant BP Plc rallied 2.3 percent and Shell added 1.5 percent as Brent crude futures climbed toward $87 a barrel to hit a one-month high on escalating U.S.-Iran tensions.
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