April 30 (Reuters) - European shares tumbled on Thursday and oil prices climbed following a report that the U.S. was considering more military action against Iran, while investors also braced for decisions from the European Central Bank and the Bank of England.
The pan-European STOXX 600 was down 0.7%, as of 0703 GMT, and on track for a second weekly decline, if the current momentum holds.
Regional bourses mirrored the move, with Germany's DAX and France's CAC 40 index down 0.9% and 1.2%, respectively.
Spain's IBEX 35 slumped roughly 6%, as traders assessed preliminary data that signalled the country's economic growth eased to 0.6% in the first quarter.
A stall in U.S.-Iran negotiations has weighed on risk sentiment, with the pan-European index closing at a three-week low on Wednesday.
Oil prices jumped as much as 7% to $125 a barrel after an Axios report said U.S. President Donald Trump was set to receive a briefing from a military commander on new plans for potential military action aimed at breaking the negotiating deadlock.
Markets also await policy decisions from the ECB and BoE, due later in the day, after the U.S. Federal Reserve's hawkish tone sent Treasury yields spiking and weighed on global bonds.
Both central banks are widely expected to keep rates on hold, with the ECB likely to signal a rate hike as soon as June to combat energy-driven inflationary pressures.
Data points including euro zone inflation and preliminary GDP estimates are also on deck.
Among early movers, shares of Volkswagen lost 2.7% after the German automaker posted a sharp drop in its first-quarter profit.
Standard Chartered climbed 1.4% after the lender reported a profit surge for the quarter.
(Reporting by Twesha Dikshit; Editing by Sherry Jacob-Phillips)
