London: European stocks experienced a decline on Thursday as escalating tensions in the Middle East cast a shadow over the prospects of reaching a near-term agreement, heightening fears about the repercussions on the global economy. The pan-European STOXX 600 index decreased by 0.4% to 625.83 points by 08:06 GMT, with all major regional stock markets also experiencing declines.
According to Yemen News Agency, crude oil prices, a key resource for energy-strapped Europe, rose more than 2.5% to $97 per barrel as the United States and Iran exchanged airstrikes. This increase in oil prices has affected shares of airlines highly sensitive to energy costs, such as Air France and Lufthansa, both of which saw their stocks fall by about 1%.
Most sectors recorded losses; however, gains in technology stocks helped offset some of the declines. Shares of French semiconductor materials supplier Soitec surged 16% after announcing annual sales that exceeded market expectations. Moreover, shares of two companies in the same sector, Infineon and STMicroelectronics, rose more than 2% each, providing a silver lining amidst the broader market downturn.