European stocks slip as Iran clashes push oil above $90, Fed bets rise

European stock markets opened lower or flat as renewed U.S.-Iran hostilities kept oil prices elevated and added to fears about inflation and higher interest rates. The renewed tensions pressured the STOXX 600 and major indices such as the DAX, though energy shares with Brent around $90 per barrel were among the few gainers as investors priced in potential supply disruptions. Market participants also reacted to hawkish signals on U.S. monetary policy from Fed commentary, with futures pricing in a higher probability of a September rate hike and bond yields moving higher in both Europe and the United States. The energy sector’s resilience helped limit downside for some markets, even as broad risk sentiment remained cautious amid geopolitical uncertainty. Across analyses, traders weighed the implications of potential prolonged disruptions in the Strait of Hormuz and the broader impact on inflation, growth, and policy paths in Europe and the U.S. Overall, the episode underscored how geopolitical shocks continue to anchor near-term volatility despite a longer-run trend of gains in some regions.