Global market: European shares dip as fresh US-Iran strikes push oil, bond yields higher

European shares slipped at the open on Monday as renewed U.S.-Iran military strikes pushed oil prices and bond yields higher, although the pan-European STOXX 600 remained on track to record its fifth consecutive monthly gain, Reuters reported.

The STOXX 600 was broadly flat at around 655 points by 0712 GMT after opening lower. London markets were closed for a bank holiday.

Read more: Global Market: Chinese property stocks slide as new rules raise consolidation fears


Energy stocks were among the stronger performers, rising 0.6% as Brent crude prices jumped more than 2% to around $90.70 a barrel. The rise in oil prices followed fresh military action in the Middle East, raising concerns about potential disruptions to energy supplies.

U.S. forces struck two missile launchers on Iran's Larak Island in the Strait of Hormuz on Sunday, marking the first known U.S. military action against Iran since late July, Reuters reported. Tehran subsequently launched attacks on two U.S. air bases in Jordan, according to Iranian media reports.

The escalation added to investor caution at the start of the week, with higher energy prices also raising concerns over inflation and the outlook for interest rates.

Germany's DAX fell 0.5% ahead of inflation data from the euro zone's largest economy. The figures could provide further clues about the European Central Bank's monetary policy outlook. Investors will also focus on euro zone inflation data and U.S. payrolls figures due later this week.

Among individual stocks, Bakkafrost fell 7.1%, making it one of the biggest decliners on the STOXX 600 after the Faroe Islands-based salmon producer reported its second-quarter results.

Despite the geopolitical pressures, the STOXX 600 remains positioned for a fifth straight monthly gain, reflecting the resilience of European equities even as investors contend with renewed risks from oil prices, inflation and global interest rates.