European shares skidded to an over one-month low on Thursday as escalating Middle East tensions and fears over potential US involvement rattled investors. Wall Street was closed.

While global energy markets are not yet pricing in worst-case scenarios for the Israel-Iran war, oil tanker rates are providing a good real-time gauge of the escalating risks.

Oil prices rose and stock markets diverged Wednesday as investors tracked the Israel-Iran conflict and a looming US interest rate decision.

Major Wall Street indexes ended a choppy trading session little changed after the U.S. central bank held interest rates steady on Wednesday, while the six-day-old Israel-Iran air war kept oil prices climbing on fears of escalation and supply disruption.

Oil prices remained volatile and major indexes were mixed in Asia as markets continued to digest the unfolding Israel-Iran conflict amid waning hopes for a quick de-escalation.