European shares are likely to commence trading with modest losses on Thursday, influenced by ongoing tensions between the U.S. and Iran as well as apprehensions regarding interest rate hikes. The technology sector might draw scrutiny after Oracle disclosed capital expenditures surpassing analyst projections in its recent earnings report.

Brent crude oil futures rose more than 1 percent to trade above $95 per barrel, easing from previous peaks after the U.S. military announced completion of its most recent airstrikes against targets in Iran.

Following the latest U.S. military actions on several sites in Iran, Tehran declared intentions to shut the Strait of Hormuz entirely to all vessels, impacting a vital route for global energy transport.

With energy costs gaining prominence, the European Central Bank plans to increase interest rates for the first time since 2023 during its meeting scheduled for later in the day.

In the United States, the Federal Reserve is anticipated to maintain current rates during its June 16-17 session, although market participants anticipate a possible increase as soon as October.

Markets across Asia showed mixed results in tentative trading, driven by worries about heightened U.S.-Iran conflicts and the prospect of sustained elevated borrowing costs.

The U.S. dollar fluctuated slightly, and gold prices edged up modestly to $4,078 per ounce, recovering from an earlier six-month low of $4,024.

Overnight, U.S. equities declined sharply as renewed military exchanges between the U.S. and Iran raised questions about peace prospects, while consumer inflation data reached its highest point in three years during May, aligning with forecasts.

President Donald Trump intensified his warnings toward Iran following mutual strikes that ensued after an Apache helicopter was downed.

Trump remarked that Iran had delayed negotiations excessively and must face consequences, later stating to media that the U.S. would strike forcefully.

Inflation data revealed a 4.2 percent yearly increase in CPI, heightening expectations for Federal Reserve rate hikes this year, with core CPI at 2.9 percent annually.

Major U.S. indices fell, with the Dow dropping 1.9 percent, Nasdaq Composite declining 2 percent, and S&P 500 retreating 1.6 percent.

European markets concluded the previous session with mixed performance amid renewed Middle East tensions, as the STOXX 600 index closed slightly down.

The FTSE 100 in the U.K. advanced 0.3 percent, whereas France's CAC 40 decreased by 0.5 percent and Germany's DAX fell 1 percent.