European equities fell to multi-month lows on Tuesday as geopolitical tensions, rising energy prices and uncertainty over Federal Reserve policy weighed on investor sentiment. The pan-European STOXX 600 declined 0.35%, its weakest performance in more than three months, while France’s CAC 40 lost 0.4% to reach a nearly four-month low; Britain’s FTSE 100 and Germany’s DAX also fell. Brent crude rose 1.2% above $113 a barrel after attacks on Saudi infrastructure. Saudi authorities blamed the strike on East-West pipeline facilities on Iranian-backed groups operating from Iraq and warned that disruptions could affect about 4% of global oil supply. Houthi forces in Yemen also renewed attacks on Saudi infrastructure and Red Sea maritime routes, while talks scheduled in Oman were canceled. Markets priced in a 90% probability of a 25 basis point Federal Reserve rate increase on Wednesday, which would be the first increase since mid-2023. Investors are also focused on Chairman Jerome Powell’s guidance on subsequent policy moves after recent U.S. inflation data raised expectations for further tightening. Technology stocks faced pressure after OpenAI and Anthropic executives called for a temporary pause in advanced AI development and international risk-management frameworks. Trustpilot fell more than 18% after reporting a net loss for the first half of 2026, while Puig Brands dropped 3.5% after announcing a €1.2 billion deal to acquire the remaining 50% of ISDIN. Attention now turns to Wednesday’s Federal Reserve announcement.