BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks were mixed on Wednesday, with Middle East tensions, regional inflation data and central bank decisions in focus.
Amid escalating tensions between Iran and Israel, the Strait of Hormuz, a critical global oil route, has become a focal point of concern. Investors remain worried that disruption of oil flows through this narrow strait could hit global economy hard.
In economic news, U.K. consumer price inflation softened in May largely due to easing transportation cost, data from the Office for National Statistics revealed.
The consumer price index registered an annual increase of 3.4 percent, slightly slower than the 3.5 percent rise seen in April. However, inflation was slightly above forecast of 3.3 percent.
The annual inflation rate in Austria edged down to 3.0 percent in May 2025 from 3.1 percent in the previous month, matching preliminary estimates.
Elsewhere, Sweden's central bank has cut its key policy rate to 2 percent and said there was a small chance of further easing later this year if economic weakness persists.
Later in the day, the Federal Reserve is widely expected to leave rates unchanged, but investors will scrutinize updated economic projections for clues to future moves.
The pan-European STOXX 600 slid 0.2 percent to 541.16 after falling 0.9 percent on Tuesday.
The German DAX eased 0.1 percent, France's CAC 40 was marginally lower and the U.K.'s FTSE 100 was up 0.2 percent.
BP Plc and Shell were moving higher as oil prices held near five-month highs amid fears the U.S. may join Israel's offensive against Iran.
Plane maker Airbus rallied over 3 percent after an announcement that it would increase shareholder returns in the coming years.
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