12:02 PM EST, 03/05/2026 (MT Newswires) -- European exchanges closed lower in Thursday trading after Wednesday's rebound, as investors were rattled by the escalating war in the Middle East, including new missile attacks by Iran against Israel, which has caused oil prices to soar.

The Stoxx Europe was down 1.4%, Germany's DAX lost 1.8%, the FTSE 100 dropped 1.5%, France's CAC also declined 1.5%, and the Swiss Market Index closed 1.6% lower.

Bank stocks tanked in Thursday trading as Credit Agricole and Societe Generale fell 3.4% and 3.3% respectively in Paris, followed by BNP Paribas, which dropped 2.7%. Deutsche Bank and Commerzbank lost 2.9% and 2.3% respectively in Frankfurt, while Barclays and Lloyds Banking declined 3% and 1.9% respectively in London, while NatWest was down 1.7%.

Mining stocks also slumped as Fresnillo and Rio Tinto dropped 7.6% and 7.2% respectively in London, followed by Anglo American and Antofagasta, which lost 4.2% and 4.1% respectively. ArcelorMittal fell 6.4% in Paris, while Heidelberg Materials declined 1.6% on the DAX.

In corporate news, BP foreign staff were evacuated from the Rumaila oilfield in Iraq after two unidentified drones landed inside the field, Reuters reported Thursday, citing Iraqi oil industry sources.

A spokesperson for BP said the company is continuously assessing the situation and taking necessary steps to ensure the safety of its people, according to the report.

BP did not immediately respond to MT Newswires' request for comment.

Shares of the British oil and gas giant rose 2.2% in London.

Shell's subsidiary in Kazakhstan and the country's energy ministry have entered into a contract for the geological exploration of the Zhanaturmys field in the Aktobe region, which spans 532 square miles, multiple media outlets reported Thursday, citing the ministry.

The agreement, which runs until 2032, covers seismological surveys, data collection, and technical evaluation in one of the country's oil and gas basins, according to the reports.

In an emailed statement to MT Newswires, a Shell spokesperson confirmed that the company is undertaking early-stage, exploratory work in the Zhanaturmys block. "This activity is focused on acquiring technical data to better understand the subsurface," the spokesperson said.

Meanwhile, Shell and Cosan failed to agree on a plan to raise capital, as talks to rescue their jointly owned Brazilian ethanol and sugar producer Raizen collapsed, Bloomberg reported Wednesday, citing people familiar with the matter.

Cosan could not match the financial support Shell had pledged on Tuesday for Raizen, while alternate proposals by Cosan were rejected by Shell, the report said.

A Shell spokesperson said in response to MT Newswires that the company acknowledges the financial challenges faced by Raizen and that it will continue working closely with Raizen's leadership to assist in their deleveraging efforts.

The spokesperson added that Shell is proposing to inject 3.5 billion Brazilian reais ($668 million) as part of a structural solution to help Raizen recover.

Shares of Shell were up 1.5% in London.

BHP Group is facing expanded restrictions on iron ore purchases by China's state-run buyer, as a contract dispute continues, Reuters reported Thursday, citing sources.

China Mineral Resources Group has told some traders to reduce purchases of BHP's seaborne cargoes, including Mac fines, Newman fines, and Newman lumps, the report said.

The move expands earlier curbs introduced in September and November, when CMRG restricted purchases of BHP's Jimblebar fines and Jinbao ore during ongoing negotiations.

BHP declined to comment on commercial negotiations, while CMRG couldn't be reached.

Shares of the mining company dropped close to 4% in London.

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