European equities were broadly flat on Tuesday as a global bond-market selloff and escalating military hostilities between the United States and Iran weakened demand for risk assets. The pan-European STOXX 600 was unchanged, Germany’s DAX fell 0.6%, France’s CAC 40 gained 0.1% and London’s FTSE 100 declined 0.4%. A sharp rise in Japan’s 10-year government bond yield to its highest level in a generation drove a global repricing of interest-rate curves, lifting U.S. Treasury and European sovereign yields as investors sought higher term premia amid persistent inflation concerns and heavy debt issuance. Higher yields pressured rate-sensitive sectors including technology, real estate and high-dividend utilities. Geopolitical risks intensified after Iran launched overnight missile strikes at two U.S. military bases in Jordan, following American air strikes on Iranian targets earlier in the week. U.S. President Donald Trump warned of possible further strikes against Iranian infrastructure, reducing hopes for an immediate ceasefire or a diplomatic agreement to protect commercial shipping through the Strait of Hormuz. Higher energy prices added to concerns that prolonged Persian Gulf supply disruptions could sustain elevated costs and revive broader inflationary pressure in European supply chains. Markets were awaiting Euro zone August Consumer Price Index data, which was expected to show persistent underlying inflation and reinforce expectations for another 25-basis-point European Central Bank rate increase at next week’s policy meeting. Investors were also looking ahead to the July U.S. Job Openings and Labor Turnover Survey, or JOLTS, for signals on labor-market tightness before Friday’s nonfarm payrolls report and the Federal Reserve’s September rate decision. Germany’s DAX and France’s CAC 40 were weighed down by industrial, automobile and consumer stocks, while the FTSE 100’s declines were limited by its large exposure to integrated oil and mining companies.