<div id="readability-page-1">Investing.com - European stocks slumped in early trading on Thursday, weighed down by a fresh surge in oil prices to their highest intraday point since the start of the Iran war, while investors were also gearing up for a series of key central bank interest rate decisions. [[pro_promotion | Track European stocks with InvestingPro - now 50% off ]] By 03:00 ET (07:00 GMT), the pan-European Stoxx 600 had dropped by 0.5%, the Dax in Germany had slipped 1.0%, the CAC 40 in France had declined 1.3%, and the FTSE 100 in the U.K. was down by 0.1%. Brent crude futures, the global oil benchmark, spiked to more than $125 a barrel in overnight trading, fueled by a report that President Donald Trump is due to receive a briefing on new potential military strikes on Iran. The action was depicted as a possible tool to break a stalemate in negotiations with Tehran around its nuclear ambitions, Axios reported. On Wednesday, Trump also posted on social media: &#34;Iran can't get their act together. They don't know how to sign a nonnuclear deal. They better get smart soon!&#34; These threats, along with the continued closure of the Strait of Hormuz, have &#34;fed growing fears about an extended stagflationary shock&#34; caused by soaring energy prices, analysts at Deutsche Bank said in a note. They added that such concerns contributed to losses across Asian equities which have extended into European shares and U.S. stock futures. Central banks in the spotlight With the specter of renewed bombardments in the Middle East and elevated oil prices looming, the European Central Bank and Bank of England will both unveil interest rate decisions later today. The ECB is anticipated to keep its deposit rate steady at 2%, but the Deutsche Bank analysts flagged that, due to Europe's exposure to climbing crude prices, markets are expecting an increase in borrowing costs at its next gathering in June. &#34;[S] o the question today is whether the ECB validates that view,&#34; the Deutsche Bank analysts wrote. For the BOE, policymakers are also seen keeping rates steady at 3.75%, but warning of twin risks of slowing growth and rising inflation in the broader outlook. The Federal Reserve also stood pat on rates as expected on Wednesday, albeit in the most contentious decision since the early 1990s - a revealing peek into deep divisions growing between officials. Fed Chair Jerome Powell also declared that he would stay on at the central bank's board after his chairmanship ends in May, a major departure from past precedent that could overshadow the handoff to Kevin Warsh, Trump's pick to succeed Powell.</div>

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European stocks fell early Thursday, impacted by a surge in oil prices, reaching over $125 a barrel, amid concerns over potential military actions in Iran. The pan-European Stoxx 600 dropped 0.5%, with major indices like Germany's Dax and France's CAC 40 also declining. Investors are awaiting interest rate decisions from the European Central Bank and Bank of England, with expectations of steady rates but warnings of inflation and growth risks. The Federal Reserve recently maintained its rates, highlighting divisions among officials.

European stocks slide amid surging oil prices, looming central bank decisions