The FTSE 100 opened 65.2 points lower at 10,600.86 on Wednesday, as fresh US military strikes on Iran triggered a spike in oil prices. Brent crude futures surged 2.22% to $75.81 a barrel, while US West Texas Intermediate (WTI) rose 2.10% to $71.92 a barrel. The escalation followed drone attacks on commercial vessels in the Strait of Hormuz.
Sterling weakened against the dollar, trading at $1.3355, down from $1.3376 at Tuesday’s London close. Against the euro, the pound slipped to €1.1693 from €1.1704.
Gainers & Losers
Energy stocks led the upside: BP gained 1.80% to £483.10, Shell added 0.71% to £3,032.50, and Centrica rose 0.68% to £170.65. Lion Finance Group advanced 1.65% to £11,730, while Burberry Group edged up 0.63% to £1,112. Scottish Mortgage Investment Trust climbed 0.27% to £1,469.50.
On the downside, Games Workshop Group fell 2.40% to £20,300, and Spirax Group dropped 1.84% to £6,390. Rio Tinto declined 1.54% to £6,720, while AstraZeneca slipped 1.04% to £14,214. London Stock Exchange Group lost 1.02% to £8,942, and Coca-Cola Europacific Partners eased 1.12% to £7,980.
Jet2 Gains £400 Million Boost from Rising Fuel Prices
Jet2 reported a £400 million balance sheet boost from rising jet fuel prices, defying travel disruption from the Middle East conflict. The AIM-listed package holiday provider said the additional £388 million in income stemmed from favorable fair value movements in jet fuel derivatives as market pricing increased amid escalating regional tensions. Jet2 has already sold 19.9 million seats for this summer, a 7% increase year-on-year.
ABF Completes £75 Million Hovis Takeover
Associated British Foods has completed its £75 million acquisition of Hovis, merging the bakery with its own Allied Bakeries division. The combined entity will operate as Hovis Bakeries starting today. ABF said the deal will generate substantial production and distribution savings, though it expects an initial earnings hit this year. CEO George Weston commented: “The transaction will support the wider UK economy, including by securing high-quality jobs.” ABF shares opened flat at £1,966.
Vistry Warns of First-Half Loss
Vistry Group warned it expects to report a first-half loss after its new CEO accelerated debt-reduction and stock-cutting measures. The housebuilder forecast a pre-tax loss of around £30 million for the six months to June 30, reflecting a £50 million hit from heavier discounts on slower-selling homes, asset sales, and landbank reductions. Excluding these measures, the company would have posted about £20 million in pre-tax profit — a sharp decline from the £260 million-plus recorded in each of the past two years.
Global Market Overview
In the US, semiconductor stocks led a sell-off, with the Nasdaq falling 1.2%, the S&P 500 down 0.5%, and the Dow Jones slipping 0.3%.
Asian markets were mixed on Wednesday. Tokyo’s Nikkei 225 dropped 2.11% to 66,819.05, while China’s Shanghai Composite lost 0.49%. Hong Kong’s Hang Seng rose 2.96%, and Australia’s S&P/ASX 200 slipped 0.21%. In India, the Nifty 50 fell 0.74% and the Sensex declined 0.76%.
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