FTSE 100 Dragged Lower as Mining Stocks Plunge on Falling Commodity Prices

FTSE 100 mining stocks tumbled on Wednesday, extending a brutal multi-day selloff that weighed heavily on London’s blue-chip index as a combination of falling commodity prices, Iranian oil supply fears, and deal-related disappointment hammered the sector.

Glencore was among the worst hit, sliding a further 2.2% to 523.5 pence — bringing its three-day decline to a punishing 6.3% since Monday’s close.

Brent crude fell 1.8% to $75.71 a barrel, its lowest level since late February, as market participants priced in a potential return of Iranian oil to global markets following diplomatic progress in US-Iran nuclear talks.

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With the US Treasury authorising Iranian oil sales for a further 60 days, energy-exposed Glencore faced a double blow from weakness in both copper and crude.

Copper futures offered little comfort, slipping to around $6.13 a pound — down roughly 3.7% over the past month — after prices broke below the critical $6.14–$6.17 support range. Analysts warned the breach “undermines the bullish case entirely” for base metals. Rio Tinto fell 0.8% and Antofagasta shed further ground after plunging 5.5% the previous session.

Anglo American retreated 0.9% after investors parsed the fine print of its newly finalised $5 billion copper joint venture with Chile’s Codelco. Although the headline valuation appeared impressive, Anglo’s effective look-through share of the pre-tax net present value amounted to only around $1.25 billion, given its 50.1% indirect stake — a sharp reality check that cooled early enthusiasm.

The broader selloff reflected mounting global risk aversion. A strengthening US dollar depressed commodity prices across the board, while weak UK flash PMI data for June added a domestic economic cloud, leaving the FTSE 100 near flat as miners dominated the list of worst performers.