European stocks closed sharply lower on Wednesday, tracking a global equity downturn after Iran and the US exchanged new strikes and raised inflationary risks for the Eurozone.
The Euro STOXX 50 fell 2.0% to 6,190 and the STOXX Europe 600 fell 1.8% to 634.
The US moved to block Iran oil sales after the war was reignited and President Trump invalidated the current ceasefire.
The resulting surge in fuel prices raised sovereign yields to reflect expectations that the ECB is likely to deliver more rate hikes this year.
Santander and Deutsche Bank sank more than 5%.
Also, UniCredit dropped 2.9% after it increased its stake Commerzbank, increasing the likelihood of a full takeover in the upcoming quarters.
Meanwhile, the AI trade continued to be unwound as software companies came under new pressure, with SAP sliding 4%.