European Stocks Drop as Oil Surges, Adding to Inflation Concern

European stocks fell for a second day as intensifying attacks on energy sites in the Middle East drove oil and gas prices higher, leading to growing concern that central banks will need to raise interest rates to cool inflation.

The Stoxx Europe 600 Index dropped 2.4% by the close. A gauge of mining shares fell the most, slumping 4.3%, as industrial metals tumbled on concern that the widening war increases the risk of damage to the economy. A banking index sank 3.1%.