European shares edged lower on Monday as oil prices climbed following fresh strikes between the United States and Iran, intensifying inflation concerns and expectations that the ECB (European Central Bank) may keep raising interest rates beyond this week’s meeting. The STOXX 600 fell 0.1% to 649.98 points by 0850 GMT, while Switzerland’s main index dropped 1.2% and Germany’s DAX lost 0.3%. Novartis fell 3.4% after its cholesterol drug failed in a closely watched study. Germany’s AfD won 44% of the vote in Saxony-Anhalt’s state election, dealing a blow to Chancellor Friedrich Merz; the party is seeking a government foothold for policies including stricter immigration controls, restored ties with Russia, reduced support for Ukraine and leaving the euro, although it fell short of an overall majority and its ability to form a government remains unclear. Energy stocks rose 1.2% as Brent crude gained more than $1 a barrel amid concerns that strikes involving vessels in and around the Strait of Hormuz could disrupt supplies for an extended period. Euro-zone investor morale reached its highest level in more than four years in September. The ECB is widely expected to raise rates by 25 basis points on Thursday, while U.S. inflation data and expectations for a Federal Reserve increase this month will also shape markets. Deutsche Bank expects another quarter-point ECB increase in December, even as policymakers have shown limited appetite for further tightening. Lottomatica rose 6.8% and Cirsa gained 7% after Lottomatica detailed how their proposed merger could expand its online business.