European stocks continued their losses on Thursday, as investors evaluated the impact of rising oil prices, which exacerbated concerns about inflation in light of the ongoing war in the Middle East.
The European STOXX 600 index fell 0.5 percent to 599 points, and is on its way to record a decline for the seventh time in nine sessions this month.
Oil prices rose again to $100 per barrel after Iranian boats apparently attacked two fuel tankers in Iraqi territorial waters, at a time when it seemed that the end of the United States and Israel’s war on Iran was still far away.
Europe, which relies heavily on oil imports, may see a rise in inflation if crude prices remain high for an extended period, increasing pressure on already weak growth in the region.
Financial markets expect the European Central Bank to raise interest rates by July, with an 85 percent chance of another increase by December.
The banking sector index, which is sensitive to economic fluctuations, led the sector losses, declining by 1.1 percent. On the other hand, ongoing geopolitical concerns pushed defense sector shares to rise 1.3 percent.
BMW shares fell 2.3 percent after the automaker expected the group’s pre-tax profits to decline moderately this year and deliveries to stagnate.
Daimler Truck shares rose 0.7 percent after the company indicated a generally stable profit margin in 2026 for its industrial activities.
The broader auto index fell 1.2 percent.
