European stock markets retreated from record highs, with energy producers pressured by falling oil prices.

The Stoxx Europe 600 index closed down 0.3% on Thursday, ending a five-day streak of gains. A temporary peace agreement between the U.S. and Iran pushed Brent crude below $78 per barrel, with shares of Shell, BP, and Total all dropping more than 2.5%.

Weakness in IT services stocks also weighed on the market, with Capgemini's shares falling 9% after Accenture predicted that disruptions from artificial intelligence and the U.S.-Iran war would lead to a decline in its revenue.

Before the pullback on Thursday, the European index had risen for several days, as the market increasingly believed that falling energy prices would boost the economy and help curb inflation.

The London FTSE 100 index fell 1%, but mining stocks and housebuilders were under pressure. The Bank of England kept its main policy rate unchanged as expected, although two policymakers voted for an immediate 25 basis point rate hike due to concerns about persistent inflation. The central bank stated that the recent drop in oil prices was "encouraging."

"Earlier this week, the excitement and relaxation in the market brought by the U.S.-Iran agreement has weakened following the latest round of central bank meetings," said Dan Coatsworth, market director at AJ Bell.

In individual stocks, the London Stock Exchange fell 7% after Rothschild & Co. Redburn downgraded its rating from "Buy" to "Neutral."

Shares of French employee benefits company Edenred SE soared 17% after the company stated it had been approached by investment funds, following reports that BC Partners had expressed interest in acquiring it