European shares were on course for their first monthly decline in six months on Wednesday as inflation risks linked to the Middle East war pushed global bond yields higher and raised borrowing costs. The pan-European STOXX 600 was up 0.7% at 642.69 points by 0722 GMT, but remained set for a 1.5% monthly decline and a nearly flat third quarter. Investors have been preparing for higher interest rates to contain inflation driven by surging energy prices. Oil edged higher after US President Donald Trump denied he would ease sanctions on Iran, while Qatar pushed for peace talks. The 10-year German bund yield eased for a second day. Mining shares rose, led by Boliden AB and Rio Tinto, while media stocks weakened. Glencore gained 1.4% after receiving approval to continue operating its Hunter Valley thermal coal project in Australia until 2045. Faster-than-expected British second-quarter growth and higher-than-expected French September inflation also shaped markets, with German September inflation data due later Wednesday.