** Around 9:35 CET, the pan-European Stoxx 600 index is virtually unchanged at 575.02 points. The defense sector is the session's laggard, shedding 0.8%.
** Market participants are focused on German CPI data due later today to gauge the war's impact on Europe's largest economy.
** The conflict in the Middle East has triggered a sharp rally in crude prices, stoking inflationary fears and pushing the Stoxx 600 toward its steepest monthly decline since March 2020.
** Tensions show no signs of easing, as Yemen's Iran-backed Houthi militia launched missiles at Israel, escalating the confrontation and fueling concerns over further disruptions to shipping routes.
** Brent crude is currently trading above 115 dollars per barrel.
** Bank of France Governor François Villeroy de Galhau stated that the ECB remains determined to prevent energy-driven inflation from broadening, though he noted it is premature to discuss timelines for potential interest rate hikes.
** Among individual stocks, INWIT fell 2.2% after TELECOM ITALIA announced the termination of a long-term lease agreement with the company.
** London-listed shares of RIO TINTO rose 3.4% after the miner reported that operations at three of its four iron ore port terminals in the Pilbara have resumed following the passage of Tropical Cyclone Narelle through Western Australia. This helped lift London's FTSE 100 index, which is up 0.2%.
(Translated by Agnese Napoletti, editing by Sabina Suzzi)
