Energy stocks jump as oil soars
Airlines slide as Tel Aviv flights suspended
Energean slides to bottom of STOXX 600

Oct 9 Reuters European stocks came under pressure on Monday as military clashes in the Middle East sparked a rush to safehaven assets such as bonds and gold, while also boosting oil prices by about 3.

The panEuropean STOXX 600 index dipped 0.1, with retailers and travel leisure stocks leading sectoral losses.

Global investors turned risk averse as military clashes between Israel and the Palestinian Islamist group Hamas deepened political uncertainty across the Middle East and raised oil supply concerns.

Israel39;s troops were fighting to recapture its towns from Hamas gunmen on Monday, acknowledging the battle was taking longer than expected more than two days after the militants burst across the fence from Gaza on a deadly rampage.

The energy index jumped 2.4 as oil prices , rallied 3 to more than 85 a barrel, keeping the broader market under pressure on concerns about elevated inflation.

The wider risk is that a sustained increase in oil prices would act as a renewed inflationary pressure and further underpin the higherratesforlonger message which investors in the equity and bond markets seem to be belatedly coming to terms with, said Russ Mould, investment director at AJ Bell.

Shares of defence companies such as Sweden39;s Saab, Italy39;s Leonardo and Germany39;s Rheinmetall surged between 6.1 and 9.5 on the prospect of a prolonged military…