European stocks closed lower on Thursday as oil and natural-gas prices surged amid the prolonged Iran-US standoff and signs that a naval blockade in the Persian Gulf could continue. Brent crude approached $108 a barrel after earlier rising more than 2% to about $105.40, while West Texas Intermediate reached $93.94. The Euro STOXX 50 fell 0.4% to 6,275, the STOXX Europe 600 declined 0.5% to 637 and Frankfurt’s DAX 40 dropped about 0.6% to 25,256, its lowest level since July 24. Rising energy costs pushed sovereign yields higher and revived inflation and interest-rate concerns, with UK 10-year gilt yields around 5.35%, near 19-year highs. Technology, autos, banks, retailers and industrials weakened, although energy shares outperformed in London and Dior surged 16% after the Arnault family group announced a €469-per-share cash offer. Tehran said the Strait of Hormuz would remain closed until its conditions were met while leaving room for diplomacy. The waterway normally carries roughly 20% of global oil and natural-gas shipments and has been closed since combined US-Israeli military action against Iran began in late February. Reports of a possible 90-day US diesel-export restriction increased volatility, although the White House rejected the report. US distillate inventories fell by 428,000 barrels to 107.4 million barrels, while crude inventories rose by 3 million barrels to 426.4 million barrels, exceeding expectations for a drawdown.