European stocks traded lower on Thursday, with the STOXX 50 and STOXX 600 both falling 0.8% as rising oil prices and escalating tensions in the Middle East weighed on sentiment. The US carried out strikes on Iran for a 12th consecutive day, while the Houthis claimed attacks on two Saudi oil tankers. Investors were also digesting a fresh round of corporate earnings while awaiting the ECB's monetary policy decision. BNP Paribas fell 1.2% despite reporting better-than-expected profit and revenue. UniCredit decreased 1.7% even after reporting a 6.6% yoy increase in revenues and saying it is aiming to acquire Commerzbank in Q4. Nestle tumbled more than 6%, after the company said it struck a deal to sell half of its waters business to private equity group Platinum Equity. In contrast, Total Energies added 1.8% after reporting its best quarterly profit in 3 years and Dassault Aviation jumped nearly 8% to top the STOXX 600 after reporting higher first-half earnings.