The FTSE 100 declined on Thursday as escalating Middle East hostilities and a clinical setback at AstraZeneca (LSE:AZN) rattled investor confidence.
The UK benchmark index fell 0.49% by 03:30 ET, underperforming European peers as German and French markets moved in the opposite direction.
Germany’s DAX advanced 0.61% and France’s CAC 40 gained 0.45%, while sterling strengthened 0.30% against the U.S. dollar to reach $1.3426.
U.S. Central Command confirmed overnight strikes on around 90 Iranian military targets, including air defence systems, missile and drone storage facilities, and naval infrastructure along Iran’s coastline.
The operation marked a second consecutive night of U.S. military action aimed at reducing Tehran’s ability to threaten commercial shipping through the Strait of Hormuz.
Iran retaliated by launching attacks on U.S.-allied Gulf states, with Kuwait intercepting incoming drones and missiles and Bahrain activating air raid sirens as residents were urged to seek shelter.
Iran’s Revolutionary Guard claimed responsibility for attacks on both Kuwait and Bahrain, with Qatar also reported to have been targeted, though no significant damage was immediately confirmed.
U.S. President Donald Trump, speaking at the NATO summit in Ankara, declared that last month’s ceasefire with Iran was “over” following renewed attacks on commercial tankers in the Strait of Hormuz.
Speaking aboard Air Force One, Trump later signalled some diplomatic movement, saying, “They want to make a deal so badly,” before adding, “I just don’t know if they’re worthy of making a deal.”
Vice President JD Vance reinforced Washington’s military posture during remarks in Milwaukee, stating, “If they shoot at ships, we’re going to knock the hell out of them.”
In commodity markets, Brent crude slipped 0.53% to $77.58 a barrel, while U.S. West Texas Intermediate eased 0.48% to $73.11 per barrel.
Gold benefited from safe-haven demand, with futures rising 0.85% to $4,116.92 per ounce and spot gold advancing 0.74% to $4,107.82.
AstraZeneca (LSE:AZN) shares fell sharply after the company confirmed its experimental heart treatment Wainua failed to achieve the primary endpoint in a late-stage clinical trial.
The failure limits AstraZeneca’s plans to expand Wainua beyond its current approved use, dealing a significant blow to the company’s pipeline expansion strategy.
Computacenter (LSE:CCC) upgraded its outlook after stronger-than-expected trading, forecasting first-half adjusted pre-tax profit will be nearly double the level recorded a year earlier, with full-year 2026 earnings expected comfortably ahead of market forecasts.
Informa (LSE:INF) announced that former Reuters chief executive Tom Glocer has been appointed chair-elect, set to succeed John Rishton as chair in 2027 as part of a planned leadership transition.
Capita (LSE:CPI) warned that issues related to its Civil Service Pension Scheme contract will reduce adjusted operating profit by between £25 million and £40 million this year, while also lowering free cash flow by £35 million to £50 million.