European stocks edged lower on Tuesday as higher oil prices intensified inflation and supply concerns linked to a prolonged Middle East conflict. The pan-European STOXX 600 was down 0.2% at 648.41 points by 0705 GMT, while Germany's DAX fell 0.3%, London's FTSE was flat and France's CAC 40 declined 0.4% after a subdued Monday session during a U.S. public holiday. Novartis dropped 8.8% after its del-desiran treatment for myotonic dystrophy failed to meet its primary endpoint in late-stage testing, following a separate pelacarsen setback announced Monday. Brent crude futures traded at $98.5 per barrel after Iran threatened retaliation against further attacks by targeting Gulf energy infrastructure, including U.S. oil and gas interests. Sandoz rose 2.9% after setting an objective to more than double net sales between 2025 and 2035, while Poste Italiane fell 0.2% after sweetening its offer for Telecom Italia in a bid to gain control of Italy's former phone monopoly.