European stock markets recovered on Thursday following a decline the previous day, with gains in the mining and technology sectors, despite ongoing tensions in the Middle East. AstraZeneca shares tumbled 6.2% after its Wainua heart disease drug failed in a late-stage trial.

The Stoxx Europe 600 index closed 0.8% higher. ASML Holding NV rose 4.8%, contributing the most to the benchmark's advance. The UK's FTSE 100 index underperformed broader European markets, falling 0.2%, weighed down by the drop in AstraZeneca.

Markets remained focused on geopolitical developments as the United States conducted strikes against Iranian targets for a second consecutive day. Gains in European equities briefly pared after Tehran stated that US forces had struck the perimeter of the Bushehr nuclear power plant on Thursday.

Following the escalation this week, which has pulled stocks back from record highs, investors are now turning their attention to second-quarter earnings to gauge whether the market's robust rally can be sustained.

"The market may be viewing this as a new normal, an uneasy equilibrium, but an equilibrium nonetheless," said Geoff Yu, a senior macro strategist at BNY Mellon. "You just have to price that volatility into your asset allocation."