European Stocks Close Lower as Oil Surge, AI Spending and Geopolitical Fears Weigh on Sentiment

European equities closed notably lower on Thursday, pressured by concerns over AI infrastructure spending, Middle East and Russia-Ukraine conflicts, elevated oil prices and French debt worries. The pan-European Stoxx 600 fell 1.05%, Germany's DAX dropped 1.07% and France's CAC 40 lost 1.39%, while the UK's FTSE 100 slipped 0.26%. Brent crude futures surged about 3.5% above $112.50 a barrel, approaching a near four-year high reached in May, after reports indicated the U.S. and Israeli militaries have developed plans for a short, intensive operation against Iran following next month's midterm elections. In the UK, miners Fresnillo, Antofagasta and Anglo American fell 6.5%, 6.1% and 5.6%, respectively, while banks Standard Chartered, Lloyds, Natwest, HSBC and Barclays declined sharply. Germany's Siemens Energy tumbled 8.6% and Infineon lost about 6%. France's Legrand fell nearly 6%, Schneider Electric dropped 5.4% and Hermes lost 5% after third-quarter revenue growth slowed on weak Chinese demand.