European stocks dropped on Friday to their lowest levels in more than one month after a ramp-up in Middle East conflict spooked investors across the globe, while shares of L’Oreal rose as the French cosmetic giant trounced estimates for quarterly sales.

The continent-wide STOXX 600 was down 0.6%, as of 0714 GMT, and has lost 1.6% so far this week.

The benchmark index was on track for its biggest weekly drop since last October, if losses hold. Indexes across major European economies such as Germany, France, Italy and Spain dropped between 0.6% and 0.9%.

Escalating tensions between Israel and Iran kept investors on edge on concerns that a spike in commodity prices could fuel inflation and push back a highly anticipated June interest rate cut by the European Central Bank.

Offsetting the glum mood, shares in L’Oreal rose 5.1% after the beauty company posted a nearly 10% rise in first-quarter sales on a like-for-like basis.

European stock markets rebound after heavy losses

The broader personal & household goods sector gained 0.4%.

Shares of Sodexo rose 3.6% after the food caterer forecast its 2024 organic revenue growth at the top of its 6%-8% range and also posted half-year sales broadly in line with estimates.