European shares held near a one-month low on Wednesday as rising bond yields and escalating tensions between the United States and Iran fueled concerns about energy-driven inflation. The pan-European STOXX 600 was flat at 647.87 points by 0714 GMT, while Germany’s DAX fell 0.2%. Brent crude rose above $95 a barrel to a six-week high as the two countries returned to a war footing, adding pressure against a backdrop of elevated government debt. The yield on German 10-year bonds reached its highest level since April 2011. LSEG-compiled data showed investors pricing in nearly a 40% chance that the European Central Bank’s deposit rate could reach 3% by March 2027, up from 25% the previous week. Lottomatica fell 6.3% and was temporarily halted after announcing plans to take over Spain’s Cirsa, creating a combined entity. Media stocks fell 1.5%, the steepest sector decline, while telecom shares led gains. Nokia Oyj rose nearly 2% after STOXX said the Finnish telecom equipment maker would return to the Euro STOXX 50.