European stock markets experienced a downturn as investor anxiety persisted regarding the potential for conflict with Iran, rising oil prices, and the possibility of higher interest rates.

German defense contractor Rheinmetall AG exerted the most significant downward pressure on the Stoxx Europe 600 index, with its shares plunging 8% after the company forecast that its current-year sales would fall short of expectations. The Stoxx Europe 600 index concluded the session down 0.6%, marking its fifth decline in the past six trading days.

The index exhibited considerable volatility throughout the day, as traders assessed the likelihood of another surge in oil prices and evaluated recent statements from former US President Donald Trump concerning military conflict. Concerns over monetary policy tightening were further amplified by comments from European Central Bank Governing Council member Peter Kazimir, who indicated that the ECB might be compelled to raise interest rates sooner than previously anticipated.

"The longer the conflict persists, the greater the impact of oil prices on inflation and, consequently, on interest rates," stated Roland Kaloyan, Head of European Equity Strategy at Société Générale.

In individual stock movements, Legal & General Group Plc saw its shares drop by 6.8%. The decline followed the insurance and asset management company reporting a solvency ratio, a key measure of its financial strength, that fell below market expectations.