European stocks flat as Middle East tensions push oil toward $100, stoking inflation fears

European indices closed mixed but stable on Tuesday, with the Stoxx 600 nearly flat, as renewed Middle East tensions over the weekend drove oil prices back toward $100 per barrel, reigniting inflation concerns. Europe's reliance on regional energy imports makes it particularly sensitive to conflict escalation. The market reaction suggests investors are weighing geopolitical risk against potential economic impact, with no clear directional conviction yet.