European shares edged lower on Wednesday ahead of US inflation data, with Brent crude climbing to the cusp of the key $100-per-barrel level as renewed tensions in the Middle East fanned inflation worries and curbed risk appetite.
The pan-European STOXX 600 was down 0.4 percent at 646.84 points, as of 0810 GMT. Germany's DAX edged 0.5 percent lower, London's FTSE lost 0.2 percent, while France's CAC 40 slipped 0.6 percent.
The Middle East conflict escalated this week after the Iranian-backed Houthi group in Yemen launched strikes on several Saudi cities, drawing a key US ally further into the war.
The latest attacks threaten to deepen disruptions to Middle East oil supplies, already strained by strikes on regional energy infrastructure and key shipping lanes.
Energy shares gained nearly 1 percent as Brent crude prices traded close to $100, a level last seen in late July.
The surge in oil prices has reignited inflation concerns, reinforcing expectations that central banks may have to keep monetary policy tighter for longer.
Traders widely expect the ECB to raise rates on Thursday, LSEG-compiled data showed, ahead of potentially market-moving US inflation data later this week.
Among individual movers, shares of Auto1 Group SE shed 4.6 percent after Christian Wallentin stepped down as CFO of the German online used-car platform.
