European markets fall as Iran war fuel inflation fears

European stock markets closed sharply lower on Wednesday as investor concerns over inflation and geopolitical instability deepened, following talks between US President Donald Trump and Chinese Premier Xi Jinping that failed to ease tensions surrounding the US-Israeli war on Iran.

Paris closed down 1.60 percent, Frankfurt fell 2.07 percent, London dropped 1.71 percent and Milan lost 1.87 percent as markets reacted to continued uncertainty over the conflict and its economic impact.