European stocks closed mostly lower on Monday as rising government bond yields, firmer oil prices and continued geopolitical tensions in the Middle East weighed on sentiment, offsetting support from a weaker U.S. dollar and reduced expectations of another Federal Reserve rate hike. The STOXX Europe 600 fell 0.22% to 656.41, after earlier gains led by technology and mining shares faded. Among major indexes, Spain’s IBEX 35 posted the steepest decline, falling 0.87% to 19,981.9, while France’s CAC 40 lost 0.66% to 8,579.6, Germany’s DAX 40 fell 0.38% to 26,338.61 and the UK’s FTSE 100 slipped 0.28% to 10,720.3. Italy’s FTSE MIB edged up 0.01% to 53,586.98. Brent crude traded around $89 a barrel as uncertainty around the U.S.-Iran conflict and disruption risks to regional energy flows renewed concerns about inflation and European growth. Investors also reassessed the U.S. rate outlook after weaker-than-expected retail sales and labor-market data pushed the dollar index down to about 99.19, its lowest level in roughly 10 weeks, while the euro rose about 0.16% to around 1.1589. Markets are now focused on the minutes of the Fed’s July meeting for further signals on interest rates.