-Iran conflict and awaited key Eurozone economic data, Reuters reported. 65 by 0710 GMT, although the benchmark remained on track for a modest weekly decline after retreating earlier in the week.

The index has continued to draw support from a strong corporate earnings season, with second-quarter profit expectations for European blue-chip companies increasing for an eighth consecutive week. 4%, driven largely by strong profits in the energy and materials sectors.

However, renewed geopolitical tensions and higher oil prices have limited risk appetite among investors. 93 a barrel after the United States threatened an indefinite naval blockade of Iran, raising concerns over potential disruptions to crude supplies.

Negotiations between Washington and Tehran remained deadlocked, with both sides adopting tougher rhetoric in recent days. S.

consumer and producer inflation data released this week have strengthened expectations that the Federal Reserve could refrain from further monetary tightening, offering some support to risk assets. Investors are now awaiting euro zone employment and gross domestic product data due at 0900 GMT for further clues on the health of the regional economy.

6% and emerged as the biggest sectoral drag. Corporate news was relatively limited as the European earnings season moved towards its close.

Reuters reported that despite the week's weakness, the STOXX 600 remains close to record levels, reflecting continued optimism over corporate earnings even as geopolitical risks and elevated energy prices create fresh headwinds.