European shares slip on renewed US-Iran tensions

European shares open lower, after sharp losses last week, as escalating hostilities between the United States and Iran prompted Tehran to close the Strait of Hormuz, rattling investors.

The pan-European STOXX 600 index fell 0.3% to 639.29 by 0702 GMT, after registering its sharpest weekly loss since late April on Friday.

The latest flare-up in the conflict has raised fresh questions over the viability of a US-Iran agreement reached last month, which aimed to restore traffic through the Strait of Hormuz and pave the way for further negotiations.

Oil prices rose over 4%, boosting energy stocks on the STOXX 600 by 1.6%.

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