European stocks bounced from session lows but still closed in the red on Thursday, as threats of escalation by the US and Iran prolonged concerns of lower oil exports from the Persian Gulf. The Eurozone's STOXX 50 fell 0.7% to 5,695 and the pan-European STOXX dropped 0.3% to 596. US President Trump exchanged threats of escalation with Iranian officials and triggered a selloff in global risk on prolonged bets that the war will impact energy commodities for longer. Still, equities trimmed their losses on reports that Oman and Iran may coordinate a system to select tankers that can cross the Hormuz chokehold. Banks fell sharply on the pressure that the war has on the economy and credit demand, with UniCredit and BNP Paribas dropping 2.5%. Tech also was also pressured by the pivot away from speculative assets, with ASML dropping 2.4% and Infineon losing 3%. European stock exchanges will be close on Friday for Good Friday, and multiple bourses will extend the holiday to Monday.