UK equities moved slightly higher on Tuesday after reports that U.S. President Donald Trump may be open to ending military operations against Iran even if the Strait of Hormuz remains largely closed. The pound strengthened modestly, while European markets showed mixed performance. Meanwhile, fresh data confirmed the UK economy expanded by 0.1% quarter-on-quarter in the final quarter of 2025.
By 07:25 GMT, the benchmark FTSE 100 index was up about 0.2%, while the pound gained 0.1% against the dollar, with GBP/USD trading near 1.3202. In continental Europe, Germany’s DAX advanced 0.1%, whereas France’s CAC 40 slipped 0.2%.
According to a report from the Wall Street Journal, Trump has told senior officials he would consider concluding military operations against Iran even if the Strait of Hormuz remains largely obstructed. The report said the administration believes attempting to fully reopen the strategic shipping route could extend the conflict well beyond the preferred four-to-six-week timeframe. Officials indicated the White House may now favour scaling back hostilities after achieving key objectives, including weakening Iran’s naval forces and reducing its missile capabilities.
UK economic update
Final GDP figures released Tuesday showed the UK economy grew by 0.1% quarter-on-quarter in Q4 2025, matching the preliminary estimate. The data indicated that public sector activity increased while private sector output declined during the period.
Consumer spending rose only 0.1% quarter-on-quarter, revised down from an earlier estimate of 0.2%. Business investment fell 2.5%, slightly better than the previous estimate of a 2.7% decline. Net trade reduced GDP growth by 0.5 percentage points. After rounding adjustments, overall economic growth for 2025 was revised slightly higher to 1.4%, up from the previously reported 1.3%.
Corporate news roundup
Raspberry Pi Holdings PLC (LSE:RPI) reported a 25% increase in full-year adjusted EBITDA, supported by resilient demand despite higher product prices linked to rising memory costs. The Cambridge-based computing platform developer recorded adjusted EBITDA of $46.4 million for the year ended December 31, 2025, compared with $37.2 million a year earlier. Revenue climbed 25% to $323.2 million, up from $259.5 million.
A.G.Barr PLC (LSE:BAG) delivered adjusted pretax profit of £65.8 million for the year ended January 31, representing a 12.5% increase from the previous year and slightly exceeding analysts’ expectations of £65.4 million, according to LSEG data. Revenue rose 4% to £437.3 million, while adjusted earnings per share reached 44.24 pence. The maker of Irn-Bru said growth in energy and health drinks helped offset higher costs linked to the Middle East conflict.
Severfield PLC (LSE:SFR) said it expects pretax profit for the financial year ending March 2026 to come in around £10.2 million, broadly matching market forecasts. The structural steel specialist also reported net debt of about £28 million, significantly below the consensus estimate of £48.5 million, reflecting strong cash management.
Future PLC (LSE:FUTR) lowered its full-year outlook by 15% to 20% as the company adjusts to a sharper-than-expected drop in traffic originating from Google. The Bath-based media group said direct advertising revenue should still grow year-on-year, while declines at Go.Compare and its B2B segment moderated during the first half and are expected to turn to growth in the second half.
Hilton Food Group Plc (LSE:HFG) reported full-year adjusted pretax profit of £73 million for fiscal 2025, in line with previous guidance. The food packaging and supply specialist reiterated its FY26 adjusted PBT forecast of £60–65 million and announced a strategic review aimed at strengthening its core red meat operations while improving efficiency and margins.
3i Infrastructure PLC (LSE:3IN) also released a portfolio update covering the period from October 1, 2025, to March 30, 2026, stating it remains on track to meet its full-year return objective. The company expects portfolio returns of 8–10%, with strong performance from FLAG supported by continued demand for subsea data connectivity driven by AI workloads.
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