The pan-European index dipped 0.1% to 624.32 points by 08:05 GMT, weighed down by sectors sensitive to energy costs. Airlines felt the immediate impact, with Lufthansa and Air France shedding 1% each as fuel price fears mounted. Automotive stocks faced even steeper pressure, retreating 1.2% in a cautious trading environment.

Despite the geopolitical gloom, Zara owner Inditex provided a bright spot, jumping nearly 5% after the Spanish retailer reported a robust start to its summer season. This performance propelled the broader retail sector to a 2% gain, making it the top performer in an otherwise lackluster session. Markets remain tethered to diplomatic rhetoric, with losses partially contained by U.S. President Donald Trump’s assertion that ongoing talks with Iran remain an active priority.