European Stocks Flat as Traders Await ECB Decision Amid Elevated Oil Prices

European stocks traded quietly on Thursday after their biggest selloff in two months. Investors were waiting for an expected interest rate hike from the European Central Bank, which is expected to deliver a 25-basis-point rate increase to 2.5%. The pan-European STOXX 600 was flat at 639.79 points.

The ECB's decision will be closely watched, and President Christine Lagarde is expected to hold a press conference at 1245 GMT. Oil prices eased on Thursday, but Brent crude remained above $100 a barrel after Iran and the United States launched their largest wave of attacks on shipping since their six-month-old conflict began.

The European Energy sector gained 0.3% as oil prices remained elevated. Data showed German inflation accelerated to 2.9% in August, in line with economists' forecasts. U.S. producer prices data for August is due later in the day and consumer prices report is scheduled for Friday.