The FTSE 100 Index Opens 0.65% Lower

The FTSE 100 declined over 0.5% on Wednesday as escalating Middle East friction and climbing oil prices revived worries about persistent inflation. A fresh round of US military strikes in Iran raised doubts regarding the durability of their recent peace treaty, triggering a selloff in UK defense shares like Babcock, BAE Systems, and Rolls-Royce. Major pharmaceutical and consumer staples stocks, including AstraZeneca, GSK, Unilever, and British American Tobacco, each fell by roughly 1% or less, while mining companies slumped alongside weakening base metals prices. Conversely, oil majors BP and Shell advanced 1.6% and 0.6% respectively, riding the crude price surge. In the broader market, FTSE 250 homebuilder Vistry plummeted 11% following an operational update, an ongoing chief executive review, and the announced departure of its chief financial officer, despite projecting full year adjusted pretax profits to meet current market expectations.

The FTSE 100 Index is falling 70 points. Losses were driven by Melrose (-2.60%), IG Group Holdings (-2.47%) and Kingfisher (-2.14%). Biggest rises came from BP (1.75%), Centrica (1.24%) and Entain (1.04%).

The FTSE 100 Index gained 32 points or 0.30 percent on Tuesday to close at 10684 points. Gains were led by Diageo (3.77%), Associated British Foods (3.77%) and Shell (3.28%). Biggest losers were Airtel Africa (-5.26%), Anglo American (-4.60%) and Halma (-4.35%).