European markets extended losses for a second consecutive week as Middle East tensions and inflation concerns weighed on investor sentiment.

European markets extended losses for a second consecutive week as Middle East tensions and inflation concerns weighed on investor sentiment. The STOXX 600 benchmark closed 0.5% lower, with all major regional bourses posting marginal weekly declines. Industrial stocks suffered the biggest losses, down 1.8%, while miners experienced the largest percentage drop at 3.3% as commodity prices fell across silver, copper, and gold. Energy stocks bucked the trend, gaining nearly 5% as oil prices rose about 1% on Friday amid Strait of Hormuz closure concerns. Banks declined 1.2%, with Standard Chartered and HSBC each down over 15% monthly due to Iran exposure. The escalating U.S.-Israeli conflict has prompted markets to reassess interest-rate expectations, with the ECB now expected to hike rates by an additional quarter-point by year-end.