Thursday Morning Markets: FTSE Subdued as Oil Climbs Amid Iran Tensions

London shares are trading lower on Thursday, with the FTSE 100 down 0.2% and the FTSE 250 also off 0.2%, tracking a soft tone across Europe where the DAX has slipped 0.5% and the CAC 40 and Euro Stoxx 50 are trading flat.

Oil prices have gained as Middle East tensions escalated. Brent crude is up 1.6% to $93.07 and WTI has climbed 1.6% to $85.72 after President Trump vowed “the most crushing economic operation ever” against Iran and any nation aiding it, following the end of a 60-day ceasefire and the UAE’s decision to sever financial ties with Tehran.

Gold, meanwhile, slipped 0.7% to $4,491 after closing at $4,523 on Wednesday.

The standout FTSE 100 faller is JD Sports Fashion, down 11.6% after its Q2 2026/27 trading statement flagged weaker sales and prompted the retailer to lower full-year profit guidance.

Investec has dropped 4.1% after confirming independent non-executive director Vanessa Olver will step down in early 2027, prompting a board succession review. Legal & General has fallen 3.1%.

On the upside, Weir Group leads the gainers (+1.5%), followed by Babcock International (+1.1%) and Diageo (+0.7%).

Elsewhere, Standard Life unveiled a UK pension risk transfer partnership backed by up to £2bn of capital alongside Goldman Sachs and other investors, targeting larger scheme buyouts.

Hays has swung to a £54.5m statutory pre-tax loss for FY26 on restructuring costs, though it maintained its dividend and beat on underlying profit.

Ashtead Technology has plunged after a profit warning, cutting its 2026 revenue and profit outlook as Middle East conflict delays subsea project work.

In the FTSE 250, Oxford Nanopore has extended its post-earnings rally (+5.5%) and Dr Martens has risen 5.1%, while Trainline (-5.4%) continued to slide on ongoing CMA competition probe concerns, with Aston Martin (-3.8%) and Plus500 (-3.4%) also declining so far on Thursday.