European stocks slipped as oil prices surged following fresh US‑Iran strikes, while investors eye the start of the earnings season. The Stoxx Europe 600 Index fell 0.2% at 8:28 a.m. in London, with construction and travel & leisure shares leading the declines. Energy stocks were the biggest gainers as Brent crude climbed 3.7% to $79 a barrel.

Washington and Tehran issued conflicting statements over the Strait of Hormuz. US Central Command said American forces carried out a new round of strikes to degrade Tehran’s ability to attack shipping. Last week the Stoxx Europe 600 snapped four weeks of straight gains amid worries that rising US‑Iran tensions could stoke inflation.

The second‑quarter earnings season is in full swing, with luxury names like Burberry Group Plc and Richemont SA reporting. “We think that this week is going to be one of volatile sideways movements before the rally can accelerate again,” said Joachim Klement, head of strategy at Panmure Liberum.

Citigroup strategist Beata Manthey remains neutral on European stocks (excluding the UK) and sees them as a good diversifier against AI volatility. She downgraded UK equities to underweight, citing a less appealing environment for earnings growth and market leadership.