European shares dip as higher crude revives inflation worries; Novartis drags

European shares edged lower on Tuesday as rising oil prices fuelled inflation worries and supply concerns over a prolonged Middle East conflict, while Novartis came under pressure after reporting its second drug development setback.

The pan-European STOXX 600 was down 0.2% at 648.41 points by 0705 GMT.

Germany’s DAX shed 0.3%, London’s FTSE was flat and France’s CAC 40 slipped 0.4%, following a relatively subdued session on Monday due to a US public holiday.

Novartis tumbled 8.8% after the Swiss drugmaker said late-stage testing of the del-desiran drug for myotonic dystrophy failed to meet its primary endpoint.

The disappointment follows another closely watched setback announced on Monday, when its experimental cholesterol drug pelacarsen failed to deliver positive results in a late-stage trial.

Oil prices climbed, with Brent crude futures trading at $98.5 per barrel after Iran threatened to retaliate against any new attacks by targeting energy infrastructure across the Gulf, including US oil and gas interests.

Among individual movers, Sandoz added 2.9% after the Swiss pharma firm said it aims to more than double net sales from 2025 to 2035.

Poste Italiane sweetened its takeover offer for Telecom Italia as it seeks to secure control of Italy’s former phone monopoly.

Shares of Poste were down 0.2%.