European Stocks Fall as Oil Spikes After Iran Gas Field Attacked

European stocks erased gains to trade lower as strikes on Iranian energy facilities pushed oil prices higher, reviving inflation fears and prompting traders to price two interest-rate hikes from the European Central Bank this year.

The Stoxx Europe 600 was down 0.8% by the close after gaining 0.7% in earlier trading. Brent crude rose to $109 per barrel after Iran said that the US and Israel attacked its giant South Pars natural gas field. In response, Iran listed energy assets in Saudi Arabia, Qatar and the United Arab Emirates it said were now targets for retaliation.