European Stocks Fall as Oil Price Surge Stokes Inflation Fears

European stocks dropped for a third day as intensifying conflict in the Middle East sent oil prices soaring to about $100 a barrel, reigniting fears that inflation could curb economic growth.

The Stoxx Europe 600 Index was down 0.6% at the close. Miners, real estate, autos, retail as well as travel and leisure stocks led the losses. The energy sector outperformed, with oil majors like Shell Plc and BP Plc up 2.5% and 2.2%, respectively.