Source: Sharecast
The Stoxx 600 index settled more or less unchanged, down just 0.2 points (-0.04%) at 553.82, having fallen as much as 0.67% around lunchtime. Small gains in London, Frankfurt and Milan were offset by losses in Paris, Zurich and Madrid.
The Stoxx 600 pan-European benchmark finished Tuesday's session at 554.02 – its highest close since 19 March.
Tensions in the Middle East increased further after a report that Israel was preparing to strike Iranian nuclear facilities, while the hard-right government of Benjamin Netanyahu was under further pressure from Western leaders over its denial of aid to Palestinians in Gaza, leaving thousands of children facing starvation.
Oil prices rose as high as 1% earlier in the day, but eased in afternoon trade after US crude inventories increased for the second straight week. Brent crude fell 0.8% to $64.86 a barrel, having touched a high of $66.63 earlier on. Meanwhile gold gained 1% to $3,343.60 an ounce on safe-haven demand.
"Brent and WTI have eased back from their overnight highs but worries about an Israeli strike on Iran could easily send them flying once again," said Chris Beauchamp, chief market analyst at IG.
"Without a comprehensive deal to restrain Tehran’s nuclear programme, Tel Aviv may feel it has run out of road and needs to act now. Such a move would prompt a much bigger move higher in oil than that seen yesterday.”
In economic news, UK consumer price inflation surged to 3.5% in April from 2.6% in March as household bills increased, hitting its highest level since January 2024. Economists were expecting a jump to 3.3%.
Market movers
Shares in JD Sports slumped 11%as the UK-listed retailer said underlying sales in the first quarter fell 2% amid a volatile market and US tariff costs.
Fellow retailer M&S managed to finish higher despite estimating a £300m hit to profits from last month's cyberattack, as the high street chain delivered strong annual results.
Shares of Julius Baer fell after the Swiss bank reported a CHF130m charge from a credit portfolio review and announced the replacement of its chief risk officer.
French media giant Publicis finished lower on the news that it is buying influencer marketing agency Captiv8 for $150m.