The pan-European STOXX 600 closed 0.6% lower

European shares closed lower on Thursday as oil prices resumed ​their rise on faltering hopes of US-Iran negotiations, keeping euro zone bond yields near multi-year highs and denting risk appetite.

The pan-European STOXX 600 closed 0.6% lower. Most regional bourses were also in negative territory.

Iranian officials communicated with US envoys on the sidelines of the UN General Assembly, but both sides signalled little progress toward ending the war.

I wouldn’t hold my breath for any quick ​resolution to the Middle East standoff. Both parties are quite intransigent, and their differences are irreconcilable, ​said Yasser El-Shimy, senior investment analyst at the Motley Fool.

Oil prices rose for a second day ⁠after dropping for five sessions, with Brent crude holding above the key $100-per-barrel level.

European energy shares were the top ​gainers, up 1.1%. Consumer-facing food and beverages and personal and household goods saw modest gains of 0.7% and 0.2%, ​respectively.

Healthcare stocks, considered traditionally defensive, were down slightly relative to other companies.

Germany’s 10-year government bond yield was steady at 3.611%, just below a 17-year high reached last week as higher oil prices strengthened the case for further monetary tightening ​from the European Central Bank.

ECB board member Isabel Schnabel resigned to take on a senior role at the ​International Monetary Fund, starting a reshuffle at the central bank.

It’s not simply what’s happening in the oil market. Bond investors have ⁠also got the hump over high levels of government borrowing, persistent deficits, and a heavy pipeline of new bond issuance, said Dan Coatsworth, head of markets at AJ Bell.

He said: Still, we’re seeing minor pullbacks as equity investors remain comforted by decent corporate earnings growth.