Stock indices of the largest Western European countries mostly declined at the close of trading on Wednesday, while the composite index finished in positive territory.

The pan-European Stoxx Europe 600 gained 0.1% and ended the session at 642.71 points.

Britain's FTSE 100 lost 0.13%, Germany's DAX fell 0.59%, Italy's FTSE MIB dropped 0.85%, and Spain's IBEX 35 declined 0.42%. France's CAC 40 added 0.19%.

Markets came under pressure from a new round of tensions in the Middle East, where the United States and Iran continue to exchange strikes using missiles and drones.

The global economy's ability to cushion the negative impact of reduced energy supplies through the Strait of Hormuz amid the renewed hostilities is diminishing, the International Monetary Fund said on Wednesday. At the same time, oil prices turned lower, falling after the release of official U.S. data on crude inventories, which showed a smaller weekly decline than expected. Against this backdrop, oil giants lost market value: BP plc by 1.7%, Shell by 0.6%, TotalEnergies by 0.8%, and Equinor by 0.5%.

Shares of ASML Holding NV fell 0.4%, although the world's leading manufacturer of chipmaking equipment increased net profit and revenue in the second quarter and also improved its full-year forecast for the latter.

The market capitalization of other semiconductor companies also declined, including BE Semiconductor (down 3%), STMicroelectronics (down 4%), ASM International (down 0.5%), and Infineon (down 6.3%).

The top gainer in the broad European index was Denmark's Zealand Pharma, whose shares rose 6.7%.

Shares of Swiss jewelry maker Compagnie Financiere Richemont SA climbed just under 6.7%. The company increased revenue by 17% in the past financial quarter, exceeding market forecasts, with revenue growth recorded in all regions where it operates.

The market value of other luxury goods makers also increased, including Kering by 3.6%, LVMH by 2%, and Hermes by 2.4%.

The sharpest decline in the Stoxx Europe 600 was posted by shares of Swedish supermarket chain operator Axfood, which plunged 14.9%. The company reported weaker-than-expected revenue for the previous quarter.

In Frankfurt trading, shares of BASF, Bayer, and Commerzbank fell by more than 2%, while the market capitalization of automaker Volkswagen and building materials supplier Heidelberg Materials rose 3.5%.