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flag European stocks dropped to a two-month low as Middle East tensions spiked oil prices and triggered widespread market sell-offs.

flag European shares fell to a two-month low amid rising Middle East tensions, with the pan-European Stoxx 600 dropping 2.34% as oil prices surged over 25% to near $120 a barrel. flag The sharp decline followed reports of attacks on key infrastructure, including an Iranian strike on a Bahraini oil facility, and Iran’s appointment of Mojtaba Khamenei as its new supreme leader. flag Banks and airlines led losses, while German industrial orders fell sharply in January, worsening economic concerns. flag Market focus now turns to ECB President Christine Lagarde and Eurogroup discussions.

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