European shares were subdued on Tuesday as expectations for an imminent end to the Middle East conflict waned after the U.S. launched fresh attacks on Iran.
The pan-European STOXX 600 was flat at 631.92 points by 0707 GMT.
On Monday, the index closed at its highest since February 27 and came within 1% of an all-time high on hopes for peace.
However, the latest attacks and U.S. Secretary of State Marco Rubio's remarks that negotiating a deal with Iran could 'take a few days' tempered expectations.
Brent crude prices rose 2%, stoking inflation worries as the euro zone relies heavily on oil imports through the Strait of Hormuz.
Airlines such as Lufthansa and Ryan Air lost 1.3% each. Morgan Stanley also downgraded the German airline.
Ferrari lost 7% after unveiling its first fully electric car, while rivals Porsche and Lamborghini scale back EV ambitions.
