Muscat: The pan-European STOXX 600 index fell to its lowest level in two weeks today, pressured by escalating Middle East tensions and sharp global sell-offs in AI-related stocks. The index dropped 0.9 percent to 616.04 points, with all major regional benchmarks in negative territory.

According to Oman News Agency, crude oil prices, a critical resource for energy-dependent Europe, jumped more than four percent after Israel and Iran exchanged attacks early in the week. This development threatens a fragile regional ceasefire and dims hopes for a swift end to the conflict.

Losses were widespread, with airline stocks, which are highly sensitive to rising energy costs, taking a hit. The technology sector also saw a decline, falling 2.1 percent, marking it as one of the biggest decliners during the trading session.

A stronger-than-expected US jobs report gave the Federal Reserve more room to hold interest rates steady, with investors now pricing in a potential rate hike in December.

Attention is now turning to the European Central Bank's interest rate decision, due on Thursday, with markets already pricing in a 25-basis-point increase.