European stock markets experienced a significant decline on Friday, primarily driven by technology and material sectors, as investors reacted to stalled negotiations between the U.S. and Iran. The pan-European STOXX 600 index fell 1.4%, closing at 607.70 points, amid rising inflation concerns linked to the ongoing conflict. U.S. President Donald Trump indicated a hardening stance towards Iran, which has contributed to fears of increased energy prices affecting the global economy. The German DAX saw a 1.7% drop, while France's CAC 40 and Spain's IBEX 35 each fell by 1.4%. The inflation data released this week highlighted significant increases in consumer and producer prices across the U.S. and Europe, prompting worries about economic slowdown. Financial stocks were also hit hard, with Barclays and Lloyds down 3% and 2.8%, respectively. In contrast, Technoprobe's stock surged 35% following an optimistic outlook for 2026, highlighting the mixed performance across sectors amid broader market instability.