European stocks finish in mixed territory amid volatile trading

Europe-listed shares finished the day in mixed territory after a volatile session, as fears of escalation in the U.S.-Iran war upended global markets once again.

The pan-European Stoxx 600 closed down 0.3%, bouncing back from a heavy dip earlier in the session.

Germany's DAX was hardest hit, shedding 0.8%. The FTSE 100, which is more tilted toward oil and gas, held up better with a 0.7% rise over the day.

"The Easter weekend might be looming for investors, but there's little cheer to be found as markets remain under pressure after [U.S. President] Donald Trump's opaque comments on Iran," said Danni Hewson, head of financial analysis at AJ Bell.

"The prospect of further escalation over the weekend has seen many investors rush to take defensive positions," she added.

"In London, the focus has been on stuff people can't do without even when their cost of living is under pressure," Hewson said. "Utilities, tobacco, and oil majors all helped the blue-chip index [FTSE 100] end the day broadly flat."

In an address to the American people on Wednesday evening, Trump said he expected the war to last another two to three weeks, during which time U.S. forces will "hit" Iran "extremely hard."

Stocks listed in Asia also reversed gains on Thursday as investors digested Trump's latest update.

Oil prices surged in the wake of the president's address, with global benchmark Brent crude jumping more than 6% to top $107.

Oil prices have skyrocketed since the U.S. and Israel launched strikes on Iran on Feb. 28, sparking retaliatory strikes across the Gulf from Tehran. Over the course of March, global benchmark Brent crude oil surged more than 60%, marking the biggest monthly price gain since records began in the 1980s.

European stocks jumped on Wednesday ahead of Trump's address, after the president first said the war would be over within weeks.

Investors are also reacting to reports on Thursday that the Trump administration is preparing new tariffs on pharmaceutical companies that have not made deals to guarantee low drug prices in the United States. Bloomberg first reported the news, citing anonymous sources.

In corporate news, British oil major Shell is reportedly in talks with the Venezuelan government to develop four large areas in some of the country's biggest offshore natural gas fields, according to Reuters.

Elsewhere, Ryanair CEO Michael O'Leary warned on Wednesday evening that the U.K. is the most vulnerable market to jet fuel shortages as the Iran war drags on, given the country's reliance on supplies from Kuwait.

— CNBC's Dan Mangan, Anniek Bao and Alex Harring contributed to this report.