London stocks climbed on Wednesday as robust results from major index constituents and a spike in crude oil prices amid fresh military action in the Middle East combined to lift investor sentiment.
As of 03:51 ET (07:51 GMT), the FTSE 100 was trading 0.50% higher. European peers showed mixed movement, with Germany's DAX up 0.05% and France's CAC 40 up 0.11%. The British pound nudged 0.08% stronger to 1.3304 against the U.S. dollar.
Market attention turned to the Middle East after U.S. Central Command said it and the Saudi Arabian armed forces carried out precision strikes in eastern Iraq on July 28 targeting militia logistics and weapons sites. CENTCOM framed the action as retaliation for more than 30 IRGC-directed drone attacks within a 72-hour period and warned Iran's Islamic Revolutionary Guard Corps and affiliated proxies to halt aggression to avoid further U.S. military action. Saudi Arabia's defence ministry confirmed the operation under Article 51 of the UN Charter.
Earlier, CENTCOM said Iran launched multiple ballistic missiles toward U.S. forces in the region in what it described as "an attempted surprise attack," and reported on the social media platform X that "all Iranian missiles were successfully intercepted." Media reports cited a U.S. military base in Jordan as a target for the missile launches. These strikes came after a White House meeting between the U.S. and Israeli leaders that was described by the U.S. press secretary as "positive and productive," and after comments by the Israeli prime minister framing the talks as a partnership focused on preventing a nuclear Iran.
Commentary around U.S. policy toward Iran featured in public remarks ahead of the strikes. In an interview, the U.S. president warned that strikes could resume if Tehran failed to reach a deal, saying he would return to military action if necessary and claiming he could destroy key infrastructure quickly if required.
Financial markets reacted to the escalation. Brent crude rose 3.3% to $84.78 a barrel, and U.S. West Texas Intermediate gained 3.7% to $82.19. Precious metals also moved higher: gold futures increased 0.11% to $4,043.20 an ounce, with spot gold up 0.4% at $4,044.06.
Corporate news in the UK supported the equity rally. Rio Tinto reported first-half profit above estimates, raised its interim dividend, and highlighted demand for metals tied to artificial intelligence. Glencore said first-half copper production rose and that marketing earnings were near the top end of its annual guidance range. Consumer health group Reckitt beat first-half profit estimates, launched a 500 million buyback and raised its interim dividend. Standard Chartered exceeded second-quarter earnings expectations, upgraded its income outlook and announced a $1 billion buyback.
These company announcements helped underpin moves in mining, banking and consumer sectors, while the jump in oil prices lifted energy-related names. Intraday quoted tickers reflected the market moves: UK100 showed gains, RKT and GLEN were among names with notable increases, and crude-related instruments LCO and CL moved materially higher.
Market implications
- Energy and commodity-linked stocks were supported by the rise in oil prices following military strikes in Iraq.
- Miners and materials companies responded to company-level updates indicating stronger-than-expected profits and production, highlighting demand drivers for certain metals.
- Banking and consumer stocks were buoyed by better-than-expected results and shareholder return announcements.
Data snapshot
- FTSE 100: up 0.50% as of 03:51 ET (07:51 GMT).
- DAX: up 0.05%; CAC 40: up 0.11%.
- Sterling: 1.3304 vs. the U.S. dollar, up 0.08%.
- Brent crude: $84.78 a barrel, up 3.3%.
- WTI: $82.19, up 3.7%.
- Gold futures: $4,043.20 an ounce, up 0.11%; spot gold: $4,044.06, up 0.4%.
Note: This report aggregates market moves, military developments and company disclosures as they were announced; it does not attempt to infer future policy or market trajectories beyond the information provided.