European shares inched higher in choppy trading on Thursday, with escalating tensions in the Middle East keeping investors cautious ahead of the European Central Bank's interest rate ‌outlook later ⁠in the ⁠day. The pan-European STOXX 600 index edged 0.3% higher to 620.24 points by 0717 GMT. Crude prices were near $95 a barrel as fresh airstrikes by the U.S. and Iran added to traders' concern over energy supplies, with no signs of the Strait of Hormuz, a critical global oil shipping route, reopening soon. Energy cost-sensitive travel ⁠and leisure ‌stocks were among top sectoral decliners, with easyJet and Lufthansa down 1.7% and 0.5%, respectively. Offsetting some of those concerns, ⁠Wizz Air reported annual profit above estimates, sending shares up 4.6%. However, the carrier did not provide a forecast for fiscal 2027, citing an uncertain outlook. Dealmaking news was also on the radar as Hugo Boss rose 6.4% after the UK's Frasers Group launched a €2 billion ($2.31 billion) takeover offer for the struggling German fashion brand. Chip stocks such as BE ‌Semiconductor and ASM International gained 4.2% and 4.8%. The broader tech has seen some volatility since late last week as AI stocks globally have ⁠paused from a strong rally over the past two months. Focus will shift later in the day to the ECB's monetary policy decision, with traders pricing in a 25-basis-point rate hike, according to LSEG-compiled data. Greater attention will be paid to the central bank's monetary policy path, given the repercussions of the oil shock on the economy. ($1 = 0.8660 euros)