March 12 (Reuters) - European shares extended losses on Thursday after investors grappled with a surge in oil prices, which exacerbated concerns about inflation amid the war in the Middle East.
The pan-European benchmark STOXX 600 fell 0.5% to 599 points by 0814 GMT, set to slide for the seventh time in nine sessions this month.
Crude prices climbed back to $100 a barrel after Iranian boats appeared to have attacked two fuel tankers in Iraqi waters, as the conflict between Iran and U.S.-Israeli forces
looked far from resolved. [O/R]
Europe, which is heavily dependent on oil imports, could see inflation edge higher if crude prices remain elevated for an extended period, adding pressure to already tepid regional growth.
Money markets were pricing in a European Central Bank rate hike by July, with an 85% probability of another increase by December.
Back in Europe, economically-sensitive banks sector led sectors lower with a 1.1% decline. The ongoing geopolitical worries lifted defence shares by 1.3%.
BMW shares declined 2.3% after the carmaker forecast group pre-tax earnings to decline moderately this year and deliveries to stagnate.
Daimler Truck firmed 0.7% after guiding for a broadly stable 2026 profit margin in its industrial business.
The broader auto sector dropped 1.2%.
(Reporting by Avinash P in Bengaluru; Editing by Rashmi Aich)
