Tensions between Iran and the U.S. on Wednesday sent Asian stocks lower overnight, and European equity markets look set to follow suit.

London's FTSE 100 looks set to open 0.3% lower, per IG data, while France's Cac 40 is slated to open 0.25% lower and Germany's Dax is seen opening flat.

Iranian news agency Tasnim reported that Tehran had suspended dialogue with mediators in protest against Israel’s expanding Lebanon offensive.

Investors are awaiting data that will shed further light on the economic impact of the U.S.-Iran war.

(Bloomberg) -- Asian stocks were poised for losses on Thursday as renewed clashes between the US and Iran added strain to a fragile ceasefire, while pushing oil prices higher.

"Financial markets shifted back into a risk-off mode as the US and Iran exchanged fire again," analysts from Westpac wrote in a research report.

Tensions between Iran and the U.S. on Wednesday sent Asian stocks lower overnight, and European equity markets look set to follow suit.