European shares edged lower on Thursday, with the pan-European Stoxx 600 falling 0.62% to €641.30, as rising oil prices and escalating Middle East tensions weighed on sentiment. London's UKX dipped 0.08%, outperforming major peers, while Germany's DAX declined 0.66% and France's CAC dropped 0.89%. The European Central Bank is widely expected to keep interest rates unchanged later in the day as officials assess the fallout from the intensifying conflict. In economic data, France's overall business climate improved to 97 in July, and its manufacturing business climate index edged up to 101.