British equities moved lower on Friday after intensifying military confrontations between U.S. and Iranian forces in the Strait of Hormuz unsettled global markets, despite U.S. President Donald Trump maintaining that a ceasefire remained active and urging Tehran to agree to a peace settlement “fast.”
By 07:20 GMT, London’s benchmark FTSE 100 index had fallen 0.81%, while sterling remained broadly stable, with GBP/USD rising 0.13% to 1.3584. Elsewhere in Europe, Germany’s DAX slipped 1%, while France’s CAC 40 declined 0.8%.
According to Washington, three U.S. destroyers passed through the Strait of Hormuz while facing attacks involving Iranian fast boats, missiles and drones, although no damage was reported.
“They trifled with us. We blew them away,” Trump said, while also claiming negotiations with Tehran were “going very well” and warning that any future military response would be “a lot harder, and a lot more violently” if Iran failed to reach an agreement quickly.
Intertek Rejects Improved EQT Takeover Proposal
Intertek (LSE:ITRK) rejected an increased £8.93 billion takeover proposal from Swedish private equity group EQT on Friday, arguing that the bid materially undervalued the testing and inspection company and carried excessive execution risk.
The rejection signals that Intertek’s board remains confident in the company’s standalone growth strategy despite the substantial premium offered by the bidder.
IAG Cuts Profit Expectations as Fuel Costs Rise
IAG (LSE:IAG), owner of British Airways, warned that full-year profits are now expected to come in below previous forecasts as rising jet fuel costs linked to the Iran conflict and broader supply disruptions place greater pressure on earnings than initially anticipated.
The downgrade highlights the growing financial impact of Middle East tensions on European airline operators.
UK House Prices Show Further Weakness
UK house prices slipped 0.1% in April, according to mortgage lender Halifax, leaving annual growth at 0.4%, below economists’ expectations of 0.6%.
The weaker reading suggests affordability challenges continue to weigh on the housing market as higher borrowing costs and geopolitical uncertainty dampen buyer demand.
Labour Suffers Heavy Losses in Local Elections
The UK Labour Party endured significant setbacks in Friday’s English local elections, with Prime Minister Keir Starmer’s party losing support across several traditional strongholds in central and northern England less than two years after its general election victory.
Nigel Farage’s Reform UK emerged as the main beneficiary, winning more than 300 council seats and strengthening its position as a growing opposition force in both Scotland and Wales.
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