European shares edged lower on Monday as escalating tensions between the United States and Iran pushed oil prices higher, raising concerns over inflation and dampening investor sentiment ahead of a busy week of corporate earnings and the European Central Bank's policy meeting.The pan-European STOXX 600 index was down 0.2% at 640.45 points by 0703 GMT. According to Reuters, the decline came as oil prices climbed sharply after the U.S. military campaign against Iran entered its ninth consecutive day, intensifying concerns over global energy supplies.Brent crude rose above $90 a barrel for the first time in a month following reports that tankers were being immobilised, increasing fears of disruptions to shipping through the Strait of Hormuz, a key global oil transit route. The surge in crude prices revived worries that higher energy costs could fuel inflation and complicate the outlook for central banks.The energy sector emerged as the top performer in Europe, gaining 1.4% as investors sought exposure to oil producers benefiting from stronger crude prices.In contrast, travel and leisure stocks fell 1.3%, weighed down by expectations that rising fuel costs could pressure airline profitability. Ryanair was the biggest drag on the STOXX 600, tumbling 4.6% after reporting a 34% decline in first-quarter profit. The budget carrier's earnings were hit by higher fuel expenses and lower ticket fares, according to Reuters.Technology stocks, however, bucked the broader market trend, rising 0.4% as investors looked ahead to earnings from major U.S. technology companies later this week. The results are expected to provide fresh direction for the artificial intelligence-driven rally that has dominated global equity markets this year.Despite strong results recently from chip industry leaders, investor enthusiasm has remained measured. Upbeat guidance from Dutch semiconductor equipment maker ASML and robust earnings from Taiwan Semiconductor Manufacturing Co. (TSMC) last week failed to generate a sustained rally in technology shares.Market participants are also closely watching the European Central Bank's policy meeting later this week. The ECB is widely expected to leave interest rates unchanged as policymakers assess the inflation outlook and the broader economic impact of rising geopolitical tensions and elevated energy prices.