European shares were flat on Thursday, with the pan-European STOXX 600 holding at 651.44 points as of 0708 GMT. Support from a recovery in global bonds after the U.S. Treasury increased purchases of long-dated debt was offset by concerns about higher oil prices and inflation. Brent crude rose about 0.6% to around $92 a barrel, weighing on travel and leisure stocks, which fell 0.4%. Basic resources dropped 0.7%, the steepest sectoral decline, as gold prices retreated on profit-taking after a rally driven by lower bond yields and a weaker dollar. U.S. President Donald Trump warned of economic consequences for any country providing “any type of lifeline to Iran” as Washington seeks to resolve its conflict with Tehran, which it entered alongside Israel nearly six months ago. Germany’s DAX underperformed as German borrowing costs reached a 15-year high amid increased defence-spending needs, reflecting broader pressure on bond yields across major economies.