(Bloomberg) — European stocks dropped and oil climbed as escalating tensions in the Middle East fueled concerns that a peace deal will remain elusive.
The Stoxx 600 index fell 0.8% as of 2:43 p.m. in London. Dassault Systemes SE was down as much as 7.2% after French firm Mistral AI struck new partnerships with Airbus SE and BMW AG, reviving fears of disruption across the software sector.
Healthcare stocks were among the biggest laggards, with AstraZeneca Plc, Novartis AG and Roche Holding AG falling more than 1%.
Brent crude rose to trade around $96 per barrel as Iran and the US accused each other of violating a fragile ceasefire, after Washington struck Iranian military targets for the second time this week.
The European benchmark came close to a record high on Wednesday before the latest attacks undermined hopes that inflationary pressures in the region would ease soon.
“Europe has been hit very hard,” Aneeka Gupta, director of macroeconomic research at WisdomTree UK Ltd., told Bloomberg TV. She said a peace deal would help improve the broader economy and support a recovery.
Elsewhere, Rheinmetall AG gained as much as 5% after winning a contract to provide military vehicles to German armed forces.
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