European shares fell at the open as escalating US-Iran tensions dented risk appetite, while investors assessed earnings from BP, Ericsson and Evotec amid rising oil prices.

The pan-European STOXX 600 index slipped 0.3% to 639.29 in early trade, extending losses after posting its biggest weekly decline since late April in the previous session.

U.S. futures for the S&P 500 were flat and futures for the Dow Jones Industrial Average declined 0.2%. Changes in futures do not necessarily predict movements after the opening…