Shares in airlines are among the top fallers across Europe as the prospectof military action against Syria fuels concern about Middle Eastern crudesupply, jolting oil prices higher.
"The geopolitical situation in Syria is going to spike - they've (theairlines have) probably all put hedges on on the assumption that oil (U.S.crude) was going to be around $110," Joe Rundle, head of trading at ETX Capital,says.
"Even with their hedges, they're still susceptible to (share price) falls."
Oil prices surge on Wednesday, with U.S. crude having hit anintra-day peak of $112.24 - its highest since May 2011 - while Brent earlier pushed above $117.
Deutsche Lufthansa led the sector lower, down 3.4 percent, whileIAG, Air France and easyJet were left nursing fallsof 2.9 to 3.3 percent.
"If you take the view that stock markets are forward looking... (the shareprice rises) are reflecting concern on what might (happen) to profitabilityshould the fuel price rise be sustained," an airlines analyst says.
Reuters messaging rm://tricia.wright1.thomsonreuters.com@reuters.net