European shares rose slightly on Thursday, as falling oil prices shifted investors' focus to concerns about weak demand, while peace efforts between the United States and Iran remain stalled and shipping in the Strait of Hormuz continues to be disrupted.
The pan-European STOXX 600 index rose 0.10% to 660.11 points, after the benchmark index retreated from record highs in the previous session.
Britain's FTSE index fell 0.4%, despite data showing the British economy grew unexpectedly in June, which provided some support for domestic growth forecasts.
US inflation data came in largely in line with expectations, easing concerns about renewed price pressures and the likelihood of the Federal Reserve raising interest rates again.
However, sentiment in European markets remained weak, amid limited progress in talks on reopening the blocked Strait of Hormuz and reaching a peace agreement between the United States and Iran.
Oil prices fell on Thursday after industry experts lowered their forecasts for global crude demand this year, citing the wider repercussions of the war in the Middle East.
The European energy sector was largely stable, while travel and leisure stocks rose 0.6%, with improved fuel cost prospects due to lower oil prices.
The banking sector led the gains in European markets, rising 0.9%.
European companies are nearing the end of their earnings season, with only a limited number of companies yet to announce their results.
Shares in Danish shipping company Maersk jumped 8.3% after its profits far exceeded expectations, and it raised its full-year profit forecast for the second time this year, supported by higher shipping rates due to the conflict in the Middle East and strong demand.
