London equities came under pressure on Friday after giving up early gains, as a sixth consecutive night of U.S. military strikes on Iran weighed on global risk appetite. The cautious mood followed broad declines across Asian markets, prompting investors to move away from risk assets.
At 03:17 ET (07:17 GMT), the FTSE 100 was 0.05% higher, although gains proved fragile. Germany’s DAX declined 0.42%, while France’s CAC 40 fell 0.53%. Sterling eased 0.03% against the U.S. dollar to $1.3472.
Asian markets endured a sharp sell-off led by Japan, where the Nikkei 225 dropped 3.96% and the TOPIX lost 2.72%. Semiconductor shares came under pressure despite a positive long-term outlook from TSMC.
In Taiwan, TSMC recovered from earlier losses to close 1.23% higher as investors assessed the company’s increased capital expenditure guidance alongside broader concerns over artificial intelligence spending.
Chinese equities also weakened. The Shanghai Composite declined 3.05%, the CSI 300 fell 3.60%, and Hong Kong’s Hang Seng Index closed 2.1% lower.
Geopolitical tensions intensified after U.S. Central Command confirmed it had completed a sixth straight night of strikes against Iran. CENTCOM said fighter aircraft, drones and warships targeted “dozens” of military sites, adding that more than 50,000 U.S. personnel are now deployed across the region.
The latest military action follows the collapse of a 14-point memorandum of understanding agreed in June.
Iranian state media reported that overnight strikes hit an airport, railway station and bridges in Hormozgan province near Bandar Abbas. Casualty reports varied, with state television initially reporting three deaths and nine injuries before other state outlets later revised the death toll to “at least seven” while maintaining that nine people were wounded.
Iran responded by targeting U.S. military infrastructure in Kuwait, Bahrain and Qatar. Kuwait’s military said it was “confronting attacks by hostile drones” from Iran, although no confirmed damage to U.S. facilities was reported.
Speaking on Thursday, U.S. President Donald Trump said the United States was “winning big” in Iran and that Americans would see “the fruits” of the campaign “very, very shortly,” although he did not provide further details during his televised address on election security.
Earlier in the day, White House press secretary Karoline Leavitt said Iran “very much continues to talk” with Washington despite the ongoing strikes, which she said were carried out in response to Iran attacking commercial vessels in breach of the June agreement.
Commodity markets reflected the heightened geopolitical uncertainty. Brent crude rose 0.33% to $84.50 a barrel, while U.S. West Texas Intermediate crude gained 0.73% to $79.52. Spot gold advanced 0.56% to $3,998.72 an ounce, with gold futures adding 0.26% to $4,002.32.
UK market round-up
Wise (LSE:WSE) reported a 25% increase in first-quarter net revenue, supported by continued growth in cross-border payment volumes and customer balances. The fintech group also reaffirmed its guidance for the full financial year.
Burberry (LSE:BRBY) posted 5% growth in first-quarter comparable store sales, matching market expectations as robust demand in the United States offset weaker consumer spending across Europe and the Middle East amid ongoing regional tensions.
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