European shares fell on Thursday after mixed earnings from companies such as Airbus and Nestlé, while tensions between the United States and Iran added to the cautious sentiment among traders.

According to Reuters, the STOXX 600 index slipped 0.1% to 628.24 points by 0813 GMT, retreating from a record closing high reached on Wednesday.

Tensions were high among traders worldwide after the United States and Iran intensified their military activities in the oil-rich Middle East, even as talks in Geneva regarding Tehran's nuclear program showed signs of progress.

The European energy sector index edged higher, supported by a nearly 1% rise in oil prices.

As for corporate earnings, Airbus shares fell 5.4% after the world's largest aircraft manufacturer lowered its key jet production target.

Nestlé reported better-than-expected sales growth in the fourth quarter and announced plans to sell its ice cream business, sending its shares up 3.5%.

Rio Tinto's shares fell 3.8% after the world's largest iron ore producer reported flat annual earnings below expectations due to lower iron ore prices. The broader mining index lost 2.3%, making it the worst-performing sub-sector.