European shares have opened lower as escalating US-Iran tensions spook investors, who scrutinised quarterly earnings from companies such as oil major BP and telecom equipment maker Ericsson to gauge the impact of the conflict on corporate health, Reuters reports.

The pan-European STOXX 600 index has slipped 0.4 per cent to 638.17 points by 0810 GMT, with travel and leisure leading sectoral decliners with a 2pc drop.

Energy price-sensitive airlines Air France and Lufthansa have fallen about 2pc each.

Brent crude prices have shot up 2.6pc to $85 a barrel.