European Stocks Slide as Middle East Tensions Lift Brent to $105, ECB Hikes to 2.50%

European equities fell on Thursday as escalating Middle East tensions pushed Brent crude to $105 per barrel, heightening risk aversion. The ECB raised its reference rate from 2.25% to 2.50%, with markets interpreting the statement as leaving room for further hikes this year, adding pressure on valuations. The Stoxx 600 closed down 0.61% at 636.49 points, reflecting a dual shock of geopolitical risk and tighter monetary policy.