Market snapshot
The FTSE 100 dropped 0.49% as of 03:30 ET (07:30 GMT), trailing European counterparts with Germany’s DAX up 0.61% and France’s CAC 40 higher by 0.45%. Sterling strengthened 0.30% against the dollar, trading at $1.3426.
Geopolitical escalation
U.S. Central Command reported strikes on roughly 90 Iranian military targets overnight, saying the strikes hit air defense systems, missile and drone storage sites and naval infrastructure along Iran’s coastline. The operations marked a second straight night of action that U.S. authorities described as intended to degrade Tehran’s ability to threaten commercial shipping in the Strait of Hormuz.
In response, Iran mounted attacks on U.S.-allied Gulf states. Kuwait’s military said its air defences were actively intercepting incoming drones and missiles. Bahrain’s Interior Ministry activated air raid sirens and urged residents to seek shelter. Iran’s Revolutionary Guard claimed attacks on both Kuwait and Bahrain, and reports indicated Qatar was also targeted. There were no immediate reports of damage from any of the three countries.
The latest exchange of strikes followed U.S. President Donald Trump’s statement at the NATO summit in Ankara that the ceasefire reached with Iran last month was "over," after Tehran resumed attacks on commercial tankers in the strait. Speaking aboard Air Force One, Trump said Iran had afterward made contact: "They want to make a deal so badly," he added, "I just don’t know if they’re worthy of making a deal."
Vice President JD Vance, speaking in Milwaukee, framed Washington’s stance bluntly: "If they shoot at ships, we’re going to knock the hell out of them."
Commodities and safe havens
Brent crude eased 0.53% to $77.58 a barrel, while U.S. crude (WTI) slipped 0.48% to $73.11. Precious metals moved higher on the risk-driven flows: gold futures rose 0.85% to $4,116.92 per ounce and spot gold climbed 0.74% to $4,107.82.
UK corporate round-up
- AstraZeneca said its experimental heart drug Wainua failed to meet the primary endpoint in a late-stage trial, prompting a significant share reaction and representing a setback to efforts to broaden the therapy’s use beyond its current approval.
- Computacenter forecast first-half adjusted pre-tax profit would nearly double from a year earlier and said it expects full-year 2026 results to come in comfortably ahead of market expectations.
- Informa named former Reuters CEO Tom Glocer as chair-elect, set to succeed John Rishton as chair in 2027 following a managed leadership transition.
- Capita warned that failures on its civil service pension contract will reduce annual adjusted operating profit by £25 million to £40 million and cut free cash flow by £35 million to £50 million.
What this means for markets
The immediate market reaction reflected a mix of geopolitical risk, modest commodity price moves and notable company-level developments. The FTSE 100’s underperformance against continental peers came as investors priced in increased near-term uncertainty tied to the new military actions and absorbed several corporate updates that altered profit and cash flow expectations for affected firms.
Data and timing
All price moves and company announcements above reflect the information available as of the times and statements cited, including the market snapshot at 03:30 ET (07:30 GMT) and the official statements and corporate releases described.