<span>STORY: European shares fell to one-month lows on Tuesday as the decline in global equities accelerated.</span><span>Investors were looking at the possibility of a protracted Middle East war.</span><span>And the inflationary impact of the new increase in oil prices.</span><span>The pan-European STOXX 600 lost 2.6%, putting it on track for its steepest one-day decline since April.</span><span>If the losses continue, the indicator will fall by approximately 4% over the last two sessions.</span><span>Every sector of the STOXX 600 was dragged lower, led by financials.</span><span>The banking index fell to its lowest level in almost three months; UK-based lenders are seen as more exposed to Middle East risk and are being hit the hardest.</span><span>Travel names came under heavy pressure. Lufthansa fell 4% in morning trading.</span><span>British Airways owner IAG fell 5.2% and Air France-KLM fell 5%.</span><span>The fear in Europe was that the energy shock would reignite inflation and depress already weak growth.</span><span>The attacks disrupted commercial shipping in the Gulf, with the Strait of Hormuz closed to maritime traffic.</span><span>It is seen as an artery for the fuel and petroleum products on which Europe depends.</span>
