European Shares Slip as Oil Fuels ECB Rate Bets

European shares slipped or traded nearly flat Monday as renewed U.S.-Iran clashes near the Strait of Hormuz pushed Brent crude above $97 a barrel and heightened concerns about prolonged supply disruptions. Energy stocks gained, but higher fuel costs lifted inflation fears and pressured economically sensitive sectors, with Switzerland and some German shares among the weaker markets. Investors widely expect the European Central Bank to raise its policy rate by 25 basis points on Thursday, while persistent energy-driven inflation has fueled speculation about another increase later in the year. Markets are also focused on U.S. inflation data due Friday, which could influence whether the Federal Reserve raises or holds interest rates next week. Technology and chip stocks provided some support, aided by renewed enthusiasm for artificial intelligence, while a failed Novartis drug trial weighed on Switzerland’s market.