Spain lost influential midfielder Rodri to injury at half-time, but shrugged that off to take the lead within two minutes of the restart through Nico Williams, who was set up by his fellow star winger, Lamine Yamal.
England came from behind as they have done so often at this Euros, as substitute Cole Palmer drove in the equaliser on 73 minutes, moments after entering the fray.
But their resurgence in the game was cut short as Oyarzabal, the Real Sociedad forward, turned in a cross in the 86th minute to hand Spain a record fourth European Championship crown, and a third in the last five editions.
They previously won in 1964, 2008 and 2012, the last two titles coming either side of their triumph at the 2010 World Cup during the golden era of Xavi Hernandez, Xabi Alonso and Andres Iniesta.
Whether this generation, led by the brilliant Yamal who was playing here a day after his 17th birthday, manage to repeat the achievements of that magnificent side remains to be seen, but theirs was a fitting victory.
