European shares drift lower as oil worries counter bond recovery

European shares inched lower on Thursday as higher oil prices fuelled supply and inflation ‌concerns linked to the Middle East war, while a recovery in global bonds after a U.S. Treasury intervention helped limit losses.

The pan-European STOXX 600  was down 0.1% at 650.23 points, as of 0848 GMT.

U.S. President Donald Trump warned of economic ​consequences against any country that provided "any type of lifeline to Iran" as Washington seeks to resolve ​the conflict with Tehran, which it entered alongside Israel nearly six months ago.

Energy ⁠stocks  rose 0.4%, tracking higher oil prices as Brent crude gained about 2% to trade around $93 per ​barrel.

Travel and leisure stocks  were down 0.6%, as higher oil prices raised concerns over fuel costs.

Basic resources  fell ​0.9%, the biggest sectoral decline, as gold prices retreated on profit-taking after a rally fuelled by lower bond yields and a weaker dollar.

The U.S. Treasury moved to support the bond market by increasing purchases of long-dated debt after yields climbed to ​multi-year highs.

Global bond markets came under pressure this week as investors fretted about increasing government debt, while ​higher oil prices compounded concerns.