European stocks fall on geopolitical tensions, rate hike fears

European stocks closed broadly lower on Wednesday, extending recent losses, as higher oil prices, rising bond yields, worries about geopolitical tensions and prospects of interest rate hikes by major central banks continued to weigh on sentiment.

Oil prices moved up after the US military hit targets in Iran and Tehran retaliated by firing missiles and drones at various sites across the region, heightening fears of supply disruptions and threatening commercial shipping through the Strait of Hormuz.

Brent Crude prices rose above $97 a barrel before dropping to around $95.70, still up over 1% from previous close.

The pan-European Stoxx 600 ended down 0.24%. The UK's FTSE 100, Germany's DAX and France's CAC 40 closed lower by 0.3%, 0.5% and 0.26%, respectively. Switzerland's SMI bucked the trend again, gaining 0.2% thank to late buying at a few frontline counters.

Among other markets in Europe, the Czech Republic, Finland, Greece, Iceland, Norway, Portugal, Russia, Spain, Sweden and Turkey closed weak.

Denmark, Ireland, the Netherlands and Poland ended higher, while Austria and Belgium closed flat.