FTSE 100 Flat Amid US‑Iran Hormuz Tensions
British equities closed marginally lower on Thursday, with the FTSE 100 slipping 0.03% to a near‑flat finish as the ongoing standoff between the United States and Iran over the Strait of Hormuz heightened risk‑off sentiment. European peers also fell, with Germany’s DAX down 0.31% and France’s CAC 40 down 0.57%. The pound gained 0.19% against the dollar, trading at 1.3632.
Equity Movers
Mining stocks bore the initial brunt: Anglo American plc declined 1.2%, while Antofagasta plc managed a modest gain of 0.1% and Rio Tinto plc rose 1.9% as gold prices advanced. JD Sports Fashion plc led the FTSE’s decliners, plunging 14.3% after lowering its FY26/27 profit outlook amid a deepening second‑quarter sales decline in North America. Hays plc announced a 65% cut to its full‑year dividend and a plan to exit seven markets, citing weak hiring demand.
Commodity and Currency Markets
Brent crude rose 2.4% to $93.83 per barrel and WTI crude increased 2.8% to $86.82 per barrel. Gold December futures fell 0.40% to $4,527.11, while spot gold slipped 1.1% to $4,472.65 an ounce. The GBP/USD pair extended its gains, up 0.19%.
Geopolitical Context
Iran’s Islamic Revolutionary Guard Corps (IRGC) warned it would deploy “more precise, more destructive” weapons if fighting with the United States resumed, and IRGC spokesman Brig. Gen. Hossein Mohebi said Iran had continued upgrading missile systems, including warheads, accuracy and range. The IRGC also warned Saudi Arabia would be unable to contain Yemen’s Houthis, who have intensified attacks on the kingdom.
U.S. officials, cited by Axios, confirmed that Washington has been running a night‑time shipping corridor through Hormuz for several weeks, moving roughly 10 million barrels a day—about half of pre‑conflict volumes—under U.S. air cover after a two‑week campaign that degraded Iranian radar.
Iranian Foreign Minister Abbas Araghchi, speaking to Mauritania’s foreign minister, urged Islamic states to deepen cooperation via the OIC to “counter the Zionist regime’s plots.”
U.S. President Donald Trump told reporters he was unhappy that South Korea declined to help secure Hormuz despite sourcing 60% of its oil there, and he confirmed an upcoming meeting with North Korean leader Kim Jong Un, stating that Kim “likes me” unlike his predecessors. Trump also announced what he called the “most crushing economic operation ever taken against any country,” warning that nations assisting Iran’s financial institutions, banks, airports or shipping registries would face “tremendous economic consequences,” dubbing the campaign “economic D‑day.”
Araghchi responded on the social media platform X, characterising the U.S. announcement as a diversion from America’s own “unprecedented debt & surging interest costs” and accusing Washington of “economic terrorism” that threatens the global economy and sovereignty.
US Treasury Action
The U.S. Treasury signalled a significant policy shift by at least doubling its long‑end buyback operations to a minimum of $4 billion per operation in the 10‑20‑year and 20‑30‑year sectors, up from $2 billion previously. Jefferies strategist Mohit Kumar noted the move helped push 10‑year Treasury yields 6 basis points lower and lifted gold and crypto on a weaker dollar. Kumar added that Jefferies remains “long gold” and sees medium‑term value, while also observing that the latest FOMC minutes were “less hawkish than feared,” with most members expecting inflation to moderate through the remainder of the year.
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