FTSE 100 Slides 0.2% Amid US‑Iran Tensions

FTSE 100 Slides 0.2% Amid US‑Iran Tensions

British equities fell further on Thursday as the FTSE 100 closed 0.2% lower, underperforming European peers; Germany’s DAX rose 1% and France’s CAC 40 gained 0.9%. The pound edged up 0.1% against the U.S. dollar, trading at $1.3408.

The market decline was driven by a sharp escalation in the Iran‑U.S. conflict. Iran’s Revolutionary Guard reported strikes on U.S.-linked targets in Bahrain and Kuwait, while Jordan’s military intercepted eight missiles launched from Iran. U.S. Central Command said its aircraft hit the perimeter of the Bushehr nuclear plant and a fishing pier in Asaluyeh, marking a second consecutive night of operations that have struck roughly 90 Iranian targets. No confirmed casualties were reported in the Gulf states. The funeral procession for former Supreme Leader Ali Khamenei began in Mashhad.

U.S. President Donald Trump warned that Iran “wants to make a deal so badly” but questioned Tehran’s worthiness, adding that strikes would become “much worse” if commercial ships are attacked again. Vice President JD Vance echoed the sentiment, stating that any attack on ships would be met with a strong response.

Commodity markets reacted to the tension: Brent crude fell 1.9% to $76.54 a barrel and U.S. WTI crude dropped 2% to $72.01 a barrel. Gold futures rose 1.3% to $4,136.70 per ounce, while spot gold gained 1.2% to $4,128.50 per ounce.

In corporate news, AstraZeneca’s shares fell 6.22% after the company disclosed that its experimental heart drug Wainua failed to meet the primary endpoint in a late‑stage trial, representing a setback to expanding the therapy beyond its current approval.

Computacenter announced that its first‑half adjusted pretax profit is expected to nearly double year‑on‑year, and it anticipates full‑year 2026 results to comfortably exceed market expectations.

Informa named former Reuters CEO Tom Glocer as chair‑elect, succeeding John Rishton in 2027 as part of a managed leadership transition.

Capita warned that failures on its civil service pension contract will reduce annual adjusted operating profit by £25 million to £40 million and free cash flow by £35 million to £50 million.