European shares edged lower on Tuesday as rising crude prices and surging euro zone bond yields pressured equities, while fading hopes for a lasting peace deal between the United States and Iran added to inflation concerns, Reuters reported.The pan-European STOXX 600 was down 0.2% at 654.81 as of 0703 GMT. Energy stocks outperformed, rising 0.6% as Brent crude climbed about 0.6% to $91.41 a barrel.According to Reuters, Iran is preparing to adopt a fully offensive military posture after efforts to negotiate a permanent end to its conflict with the United States stalled. Washington has also ruled out extending a temporary ceasefire agreement, raising concerns that the conflict could persist and further disrupt energy markets.The prospect of prolonged tensions in the Middle East has pushed oil prices higher, stoking fears that elevated energy costs could keep inflation high. Investors are also concerned that governments may need to increase defence spending, adding to borrowing requirements and putting further upward pressure on bond yields.Euro zone long-dated government bond yields rose to multi-year highs. Germany’s 10-year Bund yield reached its highest level since 2011, while France’s 10-year yield climbed to a 16-year peak.Higher yields weighed on interest-rate-sensitive equities and reduced the appeal of non-yielding assets. Basic resources stocks were the biggest decliners, falling 1%, as gold prices weakened amid rising Treasury yields.Investors were also awaiting minutes from the US Federal Reserve’s July policy meeting for clues on the central bank’s interest-rate outlook. The release could provide further insight into how policymakers are assessing inflation risks and the potential path of monetary policy.The combination of higher energy prices, rising borrowing costs and geopolitical uncertainty has added to pressure on European equities, with investors closely watching developments in the Middle East and their potential impact on inflation and economic growth.