It was a record fourth European crown, as Gareth Southgate’s team lost in their second successive final.
Oyarzabal finished off a swift counter-attack for the winning goal as Spain were crowned champions, having won all seven games they played in the tournament.
“I have done my job,” said Oyarzabal, who came on for captain Alvaro Morata after 67 minutes.
“Just the fact of being … in the 26, you value it a lot. It happened to me but could have happened to anyone.”
After a cautious first half where Spain had 65% possession but England’s Phil Foden had the only shot on target.
It took two minutes after the restart for Spain to strike despite losing influential midfielder Rodri to injury at the break.
Teenager Lamine Yamal found space down the right and crossed for fellow winger Nico Williams to slot home as England fell behind for the fourth successive match.
Spain then enjoyed a purple patch with a series of sharp attacks as England’s previously watertight defence fell apart and Dani Olmo, Morata and Williams all had good chances.
Southgate reacted by sending on Ollie Watkins, the scoring substitute hero of the semi-final, for an ineffective Harry Kane after an hour.
Cole Palmer, England’s most creative player for the last month, joined Watkins 10 minutes later.
It paid off almost immediately when Jude Bellingham laid the ball back into Palmer’s path and the substitute curled home a precise low 20-metre shot in the 73rd minute.
The massed ranks of England fans, who vastly outnumbered their rivals, exploded and the whole feel of the night changed.
Spain weathered the storm and a lapse of concentration saw England undone as Marc Cucurella was left in space on the left.
Cucurella received the ball from Oyarzabal and drilled it across the box for the substitute to stretch out a toe and poke it home.
There was still time for more drama at the other end as Spain goalkeeper Unai Simon parried a Declan Rice header from a corner.
Dani Olmo also blocked Marc Guehi’s follow up on the line.
Spain survived to add a fourth title to those won in 1964, 2008 and 2012.
They also became only the third team in the last nine Euros to win the trophy without coming through a shootout at some point in the tournament following France (2000) and Greece (2004), nobody can deny they were worthy winners.
For England the “30 years of hurt” after their 1966 World Cup success, which was sung about at Euro 1996, will now run to at least double that number.
They also became the first team to lose successive Euro finals
“Losing in a final is as tough as it gets,” said captain Kane.
“We did really well to get back into the game but we didn’t quite keep the same intensity and pressure I guess.
“We couldn’t quite keep the ball and we got punished for it.” (Reuters/NAN)
