European stocks ended a four-week winning streak on Friday, weighed down by a decline in technology shares and renewed tensions in the Middle East that caused volatility in oil markets.

The pan-European STOXX 600 index fell 1.8% over the week, as investors scaled back bets on a near-term resolution of the energy supply crisis.

The United States and Iran exchanged strikes, while Washington reimposed sanctions on Iranian oil. The NATO summit hosted by Turkey added to uncertainty after U.S. President Donald Trump called Spain a "bad partner" and threatened to halt trade with it, before later softening his tone.

Overall, the week's developments highlighted that geopolitical risks remain a key factor influencing investor confidence.

Marta Norton, investment analyst at Empower Investments, said: "There was a kind of complacency that war was no longer a problem. This week reminded us that, in fact, it still is."

Markets are now turning their attention to the corporate earnings season, hoping it will refocus on fundamentals and give stocks new momentum.

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The technology sector index fell 1.3% on Friday and 1.8% over the week.

Shares of Soitec fell 5.9% and ASML dropped 2.1% during the day.

In contrast, telecom stocks rose 1.3%, driven by a 12.6% jump in Vodafone after Emirates Telecommunications Group (e&) announced it would sell its stake in the company to the family group of French billionaire Xavier Niel.

Travel and leisure stocks also rose 1%, with airline shares rising sharply.

Shares of British airline easyJet jumped 14.3% after it agreed in principle to a £5.7 billion ($7.65 billion) takeover offer from Apollo Global.

British wealth manager St. James's Place posted the worst performance on the STOXX 600, falling 8.5% after a report that Souverain Wealth, one of the largest partners of the British company, is considering ending its relationship with the group.

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In contrast, shares of Voestalpine and Salzgitter jumped more than 6% after a brokerage upgraded the two stocks.

Ryanair shares closed up 0.9%, after paring gains of 2.9% during the session.

Volkswagen shares fell for a third consecutive session. Two company sources told Reuters that worker representatives, who wield extensive influence within the company, have blocked a comprehensive restructuring plan.

The German automaker also announced on Friday that its global car sales fell 8.6% in the second quarter, the biggest quarterly drop in four years.