The FTSE 100 was little changed on Thursday as investors monitored developments in the U.S.-Iran conflict, oil prices above $103 a barrel and elevated U.S. Treasury yields.
The FTSE 100 was up 0.02% as of 03:22 ET (07:22 GMT). Elsewhere in Europe, Germany’s DAX declined 0.22% and France’s CAC 40 fell 0.28%.
Sterling was broadly unchanged against the U.S. dollar at $1.3245, up 0.03%.
The U.S. 10-year Treasury yield remained near its highest level since 2007 after stronger-than-expected business activity data contributed to expectations that interest rates could remain elevated for longer.
European Leaders Welcome Pakistan Mediation Efforts
Investors continued to monitor diplomatic developments involving the United States and Iran.
European Council President Antonio Costa and European Commission President Ursula von der Leyen separately welcomed Pakistan’s mediation efforts on Thursday.
Iran’s Supreme National Security Council secretary Mohsen Rezaei said Tehran had communicated a five-day deadline for U.S. compliance with demands including the lifting of a naval blockade and the unfreezing of Iranian assets. According to Rezaei, the message was delivered through Qatari and Pakistani mediators.
Iranian President Masoud Pezeshkian addressed the UN General Assembly on Wednesday, a day after U.S. President Donald Trump made threats against Iran during his own appearance at the gathering.
The United States and Iran also held their first in-person discussions in months through Qatari intermediaries on the sidelines of the UN General Assembly.
U.S. Treasury Secretary Scott Bessent said the U.S. pressure campaign was intended to result in either internal political change in Iran or an agreement that Tehran would comply with.
Strait of Hormuz Traffic Remains Below Average
Shipping activity through the Strait of Hormuz remained below recent averages.
Preliminary Reuters shipping data showed 10 commodity vessels transited the waterway on Wednesday, compared with a 10-day moving average of approximately 17.
U.S. aviation sanctions against Iran also took effect on Wednesday, resulting in the removal of most Iranian flights to Turkey, the UAE and China. Oman, Azerbaijan and Georgia also barred Iranian carriers.
Brent Trades Above $103 a Barrel
Brent crude was up 0.15% at $103.17 a barrel, while WTI crude increased 0.10% to $92.22.
December gold futures settled 0.01% lower at $4,318.17, while spot gold declined 0.10% to $4,283.
UK Corporate Updates
Halma (LSE:HLMA) raised its FY2027 adjusted EBIT margin guidance following its first-half trading performance and acquisition activity.
CVS Group (LSE:CVSG) reported higher full-year revenue, supported by its Australian operations and improved like-for-like sales, while the company resumed UK acquisition activity.
Mitchells & Butlers (LSE:MAB) reported fourth-quarter like-for-like sales growth and said it expects cost pressures to moderate in FY2027.
Raspberry Pi (LSE:RPI) reported a 90% increase in first-half revenue as unit shipments increased and demand from OEM and reseller customers grew.
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