The FTSE 100 traded lower on Thursday as investors reacted to escalating tensions in the Middle East, while shares in AstraZeneca (LSE:AZN) declined sharply after disappointing late-stage clinical trial results. The UK benchmark index fell 0.49% by 03:30 ET (07:30 GMT), lagging its European counterparts. Germany’s DAX advanced 0.61%, France’s CAC 40 gained 0.45%, and sterling strengthened 0.30% against the U.S. dollar to $1.3426.
Investor sentiment remained fragile after U.S. Central Command confirmed overnight strikes on around 90 Iranian military targets, including air defence systems, missile and drone storage facilities, and naval infrastructure along Iran’s coastline. The operation marked a second consecutive night of military action aimed at reducing Tehran’s ability to threaten commercial shipping through the Strait of Hormuz.
Iran responded by launching attacks targeting U.S.-allied Gulf states. Kuwait said its air defence systems intercepted incoming drones and missiles, while Bahrain activated air raid sirens and urged residents to seek shelter. Iran’s Revolutionary Guard claimed responsibility for attacks on both countries, with Qatar also reported to have been targeted. No immediate reports of significant damage were released.
The latest escalation follows comments by U.S. President Donald Trump at the NATO summit in Ankara, where he declared that last month’s ceasefire with Iran was “over” after renewed attacks on commercial tankers in the Strait of Hormuz. Speaking aboard Air Force One, Trump later said Iran had reopened communication channels, stating, “They want to make a deal so badly,” before adding, “I just don’t know if they’re worthy of making a deal.”
Vice President JD Vance also reiterated Washington’s position during remarks in Milwaukee, saying, “If they shoot at ships, we’re going to knock the hell out of them.”
In commodity markets, Brent crude slipped 0.53% to $77.58 a barrel, while U.S. West Texas Intermediate crude eased 0.48% to $73.11. Gold continued to benefit from safe-haven demand, with futures rising 0.85% to $4,116.92 per ounce and spot gold advancing 0.74% to $4,107.82.
UK Market Round-Up
AstraZeneca (LSE:AZN) came under pressure after announcing that its experimental heart treatment Wainua failed to achieve the primary endpoint in a late-stage clinical trial, limiting its plans to expand the therapy beyond its current approved use.
Computacenter (LSE:CCC) upgraded its outlook after reporting stronger-than-expected trading, forecasting that first-half adjusted pre-tax profit will be nearly double the level recorded a year earlier. The company also expects full-year 2026 earnings to come in comfortably ahead of current market forecasts.
Informa (LSE:INF) announced that former Reuters chief executive Tom Glocer has been appointed chair-elect and will succeed John Rishton as chair in 2027 as part of a planned leadership transition.
Capita (LSE:CPI) warned that issues related to its Civil Service Pension Scheme contract will reduce adjusted operating profit by between £25 million and £40 million this year, while also lowering free cash flow by £35 million to £50 million.
Leave a Reply