European shares fell modestly on Friday but remained on track for their first positive weekly close in three weeks. The Stoxx Europe 600 dropped about 0.44%, while Germany’s DAX and France’s CAC 40 each declined roughly 0.7% and London’s FTSE 100 lost 0.6%. The pan-European index was still approximately 0.5% higher for the week after a volatile period shaped by oil-supply disruptions and central-bank decisions. The Federal Reserve unanimously raised rates by 25 basis points, or 0.25 percentage point, to a 3.75%-4% target range, its first rate adjustment since mid-2023. Fed Chairman Kevin Warsh stressed the central bank’s commitment to fighting inflation despite political headwinds, helping ease investor concerns and supporting the Stoxx 600’s strongest one-day gain in more than two months on Thursday. The Fed projected one more hike this year followed by one cut by the end of 2028, with rate projections of 4.1% for 2026, 4.1% for 2027, 3.9% for 2028 and 3.2% over the long run. Twelve of 18 officials expected another increase this year. The Bank of England kept its policy rate at 3.75% in a 6-3 vote but said energy-price pressures could require a move to 4.00% at its November meeting. The Bank of Japan raised rates to their highest level in 31 years, with two policymakers dissenting. Brent crude fell about 1.5% on Friday but remained nearly 15% higher for the week near $104 a barrel after coordinated attacks on Saudi Arabia’s East-West pipeline infrastructure threatened about 4% of global oil supply. Later Houthi attacks in the Red Sea pushed Brent above $113 and drove the U.S. 10-year Treasury yield above 5% for the first time since 2007. Alternative shipping and energy routes through Oman helped ease price pressure by week’s end. Technology stocks outperformed, led by gains of 2.1% for ASML Holding and 2.2% for STMicroelectronics, while energy, telecommunications and luxury shares lagged. Nestle fell 1%-1.3% after Russia seized the Swiss multinational’s Russian operations, Orange dropped nearly 4%, Shell lost 1.2% and Allianz declined 1.3%. Polish apparel retailer LPP jumped 6% after reporting a 64% increase in second-quarter earnings. The week ended with markets recovering from Tuesday’s sharp selloff, when the Stoxx 600 reached its lowest level since June.