European bourses drifted moderately lower midday Monday as traders watched oil prices and interest rates track higher amid expectations for a possible renewed military conflict in the Middle East.
Oil stocks led gains on continental trading floors, while bank shares lagged.
Yields on benchmark 10-year German bonds were higher, near 3.18%, the highest yield since 2011.
Front-month North Sea Brent crude-oil futures were up 1.2% at $110.54 a barrel. The Strait of Hormuz remained largely closed to oil-tanker traffic.
Investors also eyed Wall Street futures flashing red amid lower closes overnight on Asian exchanges.
In economic news, Switzerland's Q1 gross domestic product expanded 0.5% from Q4, the Swiss State Secretariat for Economic Affairs reported. For all of 2025, the nation's GDP expanded by 1.4% from 2024.
The pan-continental Stoxx Europe 600 Index was off 0.4% mid-session.
The Stoxx Europe 600 Technology Index was down 0.2%, and the Stoxx 600 Banks Index lost 1.2%.
The Stoxx Europe 600 Oil and Gas Index rose 1.8%, while the Stoxx 600 Europe Food and Beverage Index declined 0.3%.
The REITE, a European REIT index, was 0.3% lower.
On the national market indexes, Germany's DAX was steady, but the resource-heavy FTSE 100 in London gained 0.3%. The CAC 40 in Paris was down 1%, and Spain's IBEX 35 eased 0.7%.
The Euro Stoxx 50 volatility index was up 5.6% at 23.52, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.