European stocks posted their biggest weekly loss in two months, snapping a five-week winning streak. The decline was driven by persistent geopolitical risks and a surge in oil prices that weighed heavily on airline shares. Investors retreated from riskier assets as uncertainty clouded the market outlook.

The oil price jump directly pressured the airline sector, which is highly sensitive to fuel costs. This move erased earlier gains built on optimism about corporate earnings and economic recovery. For investors, the reversal signals renewed volatility and the need to watch energy prices and geopolitical developments closely.

Next week, attention will turn to central bank meetings and inflation data. Further oil volatility could keep pressure on transportation stocks. The market's reaction will hinge on whether geopolitical tensions ease or escalate, impacting both energy and travel sectors.