European Shares Dip Amid Geopolitical Tensions and Economic Uncertainty

European markets faced heightened uncertainty as shares tumbled on Thursday, influenced by reports of potential U.S. military action against Iran and forthcoming decisions from major central banks.

The pan-European STOXX 600 index declined 0.7% early in the trading day, following similar downturns in Germany's DAX and France's CAC 40. Spain's IBEX 35 witnessed a significant slump, exacerbated by news of a slowing Spanish economy.

In the commodity market, oil prices soared by as much as 7%, reaching $125 per barrel. This surge followed a report that U.S. President Donald Trump was set to receive a briefing on new military plans targeting Iran, complicating ongoing negotiations. Meanwhile, investors awaited policy signals from the ECB and BoE, anticipating potential rate hikes to combat inflation.

(With inputs from agencies.)