European stocks ended flat yesterday as crude oil hit a record $72.20 a barrel, putting the skids under airlines and carmakers, while resources stocks rallied to help propel Britain's FTSE 100 higher.
Philips Electronics dropped after missing analysts' first-quarter forecasts, while online gamer PartyGaming sank on concerns about overexposure in the United States, and British Land rose after broker upgrades.
The FTSEurofirst index of Europe's top 300 shares closed 0.1 per cent lower at 1,368.32 points in the first session since the four-day Easter break, with gains on Wall Street lending support late in the session.
Britain's resource-heavy FTSE 100 climbed 0.2 per cent to buck the slide in Europe's major indexes, while Germany's DAX fell 0.3 per cent, and France's CAC 40 slipped 0.1 per cent.
"We have to get used to higher oil prices. This will be a factor in the future you have to calculate. I don't think it's time to panic," said Philipp Musil, fund manager at Constantia Privatbank.
North Sea Brent crude reached an all-time high at $72.20 a barrel as fears grew of possible military action against Iran and a major Nigerian supply outage dragged into a third month.
The soaring oil price boosted energy stocks, with BP up 1.2 per cent, Total climbing one per cent and Royal Dutch Shell 1.4 per cent higher on prospects for stronger earnings.
Miners also jumped as copper and zinc hit fresh highs, with BHP Billiton up five per cent, Rio Tinto up 3.8 per cent, and Anglo American closing 2.4 per cent higher.
Airlines and travel stocks were among Europe's biggest losers, with Air France KLM down 1.9 per cent and discount carrier Ryanair 2.1 per cent lower on worries higher oil prices will hurt profits.
Britain's British Airways, however, rose 1.3 per cent after announcing it would raise its fuel charges on long-haul flights and raised its fuel bill estimates.
Carmakers also dropped, with DaimlerChrysler down 0.7 per cent, BMW 0.6 per cent lower and Volkswagen down 1.6 per cent.
"For the time being I wouldn't panic or read too much into (the oil price), but if it goes even higher or if it remains at such a level for an extended period, it could become a drag on the economy," said Jan Leroy, European fund manager at Petercam Asset Management.