UK equities moved higher on Wednesday, supported by a series of stronger-than-expected corporate earnings from several FTSE 100 constituents, while energy stocks gained as oil prices climbed following joint U.S. and Saudi military operations in Iraq.
By 03:51 ET (07:51 GMT), the FTSE 100 had advanced 0.50%. Elsewhere in Europe, Germany’s DAX edged up 0.05% and France’s CAC 40 added 0.11%. Sterling also strengthened slightly, rising 0.08% against the U.S. dollar to 1.3304.
Oil prices extended their gains after the U.S. Central Command (CENTCOM) and Saudi Arabian armed forces carried out coordinated strikes on militia logistics and weapons facilities in eastern Iraq on Tuesday. According to CENTCOM, the operation was launched in response to more than 30 drone attacks attributed to Iran’s Islamic Revolutionary Guard Corps (IRGC) over a 72-hour period.
“U.S. Central Command and the Saudi Arabian Armed Forces conducted precision strikes in Iraq, July 28, against Iran-aligned terrorists,” CENTCOM said, adding that the IRGC and its affiliated groups must “halt the aggression immediately to prevent further US military action.”
Saudi Arabia’s Ministry of Defence separately confirmed the strikes, stating they were conducted under Article 51 of the United Nations Charter.
Earlier, Iran fired multiple ballistic missiles toward U.S. military forces stationed in the Middle East in what CENTCOM described as “an attempted surprise attack,” adding on social media platform X that “all Iranian missiles were successfully intercepted.”
According to Axios, the intended target was a U.S. military installation in Jordan, marking Iran’s first direct strike against a U.S. base since Washington paused military action against Tehran last week to allow diplomatic negotiations.
Regional governments reacted swiftly. Kuwait and Qatar both condemned the missile launches, with Kuwait’s Foreign Ministry describing the incident as “a flagrant violation of the sovereignty of Jordan and a threat to its security and stability.”
The escalation followed talks between U.S. and Israeli leaders at the White House, which the U.S. press secretary described as “positive and productive.”
In a video published on Instagram, the Israeli prime minister said the meeting was “a conversation with full partnership” focused on preventing Iran from developing nuclear weapons.
Earlier on Tuesday, the U.S. president told Fox News that military action could resume if negotiations with Tehran failed.
“If they don’t make a deal, then I go back, and I finish the job,” he said, adding that he could destroy most of Iran’s bridges “in less than an hour.”
Commodity markets reflected the heightened geopolitical uncertainty. Brent crude rose 3.3% to $84.78 per barrel, while U.S. West Texas Intermediate crude gained 3.7% to $82.19. Gold futures edged up 0.11% to $4,043.20 an ounce, with spot gold adding 0.4% to $4,044.06.
UK Market Highlights
Rio Tinto (LSE:RIO) reported first-half earnings ahead of expectations, increased its interim dividend and highlighted growing long-term demand for metals linked to artificial intelligence infrastructure.
Glencore (LSE:GLEN) announced a 15% increase in first-half copper production, maintained its full-year production guidance and said marketing earnings are expected to be near the upper end of its annual target range.
Reckitt (LSE:RKT) delivered stronger-than-expected first-half profit, unveiled a £500 million share buyback programme and raised its interim dividend while reaffirming its full-year outlook.
Standard Chartered (LSE:STAN) exceeded second-quarter earnings forecasts, upgraded its income guidance for 2026 and announced a new $1 billion share buyback programme.
Leave a Reply