European stock markets have closed sharply lower as inflation concerns deepen following talks between US President Donald Trump and Chinese President Xi Jinping that failed to ease tensions linked to the US-Israeli war on Iran, Al Jazeera reports.

The Paris exchange fell 1.60 per cent, Frankfurt dropped 2.07pc, London declined 1.71pc, and Milan slid 1.87pc, reflecting broader investor anxiety over rising prices and geopolitical uncertainty.