Wednesday Morning Markets: FTSE Slips as US-Iran Tensions Weigh

London’s blue-chip index is trading lower on Wednesday morning, with the FTSE 100 down 0.3% and the mid-cap FTSE 250 off 0.5%, as renewed geopolitical risk and stronger-than-expected UK inflation data dented investor appetite.

European peers were mixed, with Germany’s DAX falling 0.3% and the Stoxx 50 easing 0.1%, while France’s CAC 40 declined 0.2%.

Sentiment was rattled overnight by a continued escalation in the US-Iran conflict, with Iranian media reporting five wedding guests killed in fresh US strikes and President Trump warning of further attacks, keeping safe-haven flows in focus.

Gold ($4,323, -0.1%) and silver ($64.00, -0.1%) ticked lower. Oil is little changed after strong a rise on Tuesday, with Brent at $94.72 (+0.1%) and WTI at $90.09 (-0.1%).

On the economic front, BRC data showed UK shop price inflation accelerated to 1.5% year-on-year in August, up from 0.9% in July and the highest reading since February 2024, as higher energy costs and AI-driven chip shortages pushed up food and electricals prices.

In corporate news, BP announced Ian Tyler as permanent Chair, promoting him from the interim role, alongside news that senior independent director Dame Amanda Blanc will step down by the 2027 AGM.

Halma confirmed a $170m acquisition of US water-quality specialist Pyxis. TT Electronics jumped after half-year profits rose 37% and it upgraded its full-year outlook. Avon Technologies secured a $20.3m US defence order, while Wizz Air reported August passenger traffic up 26% year-on-year.

On the risers board, IHG (+1.67%), Admiral (+1.58%) and NatWest (+1.49%) lead the FTSE 100, while Computacenter (-2.36%), Reckitt Benckiser (-1.87%) and St James’s Place (-1.67%) lag.

In the FTSE 250, Oakley Capital (+3.40%) and energy names Ithaca (+2.00%) and Harbour Energy (+2.20%) advanced, while Trustpilot (-4.37%), AEP Plantations (-4.06%, following weak half-year results) and Foresight Group (-3.91%) were among the biggest fallers.