Stock markets are lower and oil prices higher after President Trump’s address on the Iran war broke little new ground.
The price of a barrel of Brent crude jumped above $107, although the FTSE 100 index largely weathered the storm.
Meanwhile, Lloyds Banking Group has reiterated its £1.95 billion provision for the cost of motor finance redress.
FTSE 100 Live Thursday
- Stagflation fears rise
- Lloyds sees £2bn car finance bill
- Speedy Hire profit alert
Market update: FTSE 100 holds firm as oil stocks rally, crude at $108
10:07 , Graeme EvansThe FTSE 100 index withstood another blow to sentiment today after the price of Brent crude oil surged 7% on the back of President Trump’s Iran speech.
The support of energy, tobacco and utility stocks meant London’s top flight recovered from a weak start to stand broadly unchanged at 10,360.38.
That was in contrast to falls of 1.5% in Frankfurt and 1% in Paris, while the FTSE 250 index dipped 1% as mid-cap stocks suffered against a backdrop of stagflation fears.
Having dipped yesterday on hopes of Middle East peace, the price of Brent crude jumped 7% to $108 a barrel after President Trump’s address last night delivered little new on timelines or conditions for ending hostilities against Iran.
This left markets uneasy about further escalation and sustained military activity in the region, as well as the potential for a prolonged closure of the Strait of Hormuz.
US stock market futures eased 1%, while bond yields resumed their rise and the price of non-yielding gold fell 3% as traders reassessed the outlook for interest rates.
Precious metals-focused Fresnillo and Endeavour Mining fell 5% at the bottom of the FTSE 100 index, with copper miners Antofagasta and Anglo American down 3%.
Rolls-Royce gave up yesterday’s rebound by falling 25p to 1182p, while British Airways owner IAG retreated 2% or 6.3p to 363.5p.
The oil price rise boosted BP and Shell by 4% or 24.3p to 600.3p and 3% or 105.5p to 3549p respectively.
British Gas owner Centrica rose 3.1p to 215.1p, while renewables firm SSE edged up 7p to 2683p after it tightened its earnings guidance for the year just ended.
Other defensive stocks in demand included National Grid, Tesco and British American Tobacco after gains in the range of 1%-2%.
Lastminute.com highlights war impact, 2025 revenues higher
10:03 , Graeme EvansLastminute.com said war in the Middle East has impacted some 17,000 bookings, while holidaymakers are shifting towards alternative destinations like the Canary Islands and Sardinia.
The website, which offers holiday packages to destinations including Dubai and Abu Dhabi, said it was having to “adapt quickly” to travellers changing their preferences in light of the conflict.
The Netherlands-based company reported a 15% jump in revenues to 361 million euros (£315 million) for the 2025 financial year.
Speedy Hire profit alert hits shares
09:58 , Graeme EvansSpeedy Hire shares have tumbled after it warned annual profits are set to drop amid worsening trading conditions.
The London-listed equipment hire firm said it expects underlying earnings to fall to around £90 million in the year to March – a 7% drop from £97.1 million the previous year – after seeing trading take a turn for the worse in its final quarter.
It blamed uncertainty caused by last November’s budget, as well as the conflict in the Middle East, adding that some “customer-led delays” have hit hire and services revenues.
Shares fell 13% or 2.8p to 19.2p.
FTSE 100 steadies, mid-cap benchmark down 1%
09:03 , Graeme EvansStock market sentiment has calmed after an earlier sharp fall by the FTSE 100 index.
London’s top flight is 14.40 points lower at 10,350.39, reflecting the support of stronger oil, utility and tobacco stocks.
In contrast, the FTSE 250 index is more than 1% lower and leading benchmarks in Paris and Frankfurt have fallen 1% and 1.4% respectively.
Mining stocks dominate the FTSE 100 fallers board, while the shares of Rolls-Royce and British Airways owner IAG have fallen 2%.
McBride lifts prices as cost pressures mount
08:33 , Graeme EvansOven Pride household goods group McBride has revealed “temporary” price hikes to cover increased costs from the Iran war.
It also warned it is seeing the first signs of supply shortages caused by the conflict.
The group makes branded and white label household and cleaning products for the likes of Tesco and Sainsbury’s.
It said the “most heavily impacted” chemical and packaging suppliers are pushing through price increases as they face rising costs for petrochemical-derived feedstocks and higher energy costs in chemical and packaging production.
McBride’s comments came in an update as it also announced a £34.5 million deal to buy Eurotab – a French-based specialist in cleaning tablets, such as for dishwashers.
FTSE 100 lower as IAG falls 3%, Lloyds drops 2%
08:13 , Graeme EvansThe FTSE 100 index has fallen 0.6% or 63.34 points to 10,301.45 after stocks gave up their gains of the previous session.
Barclays fell 9.7p to 399.4p, British Airways owner IAG shed 3% or 11.4p to 358.4p and Rolls-Royce weakened 31.5p to 1175.5p.
Other fallers included Lloyds Banking Group, which dropped 2% or 1.8p to 95.8p after the lender made no change to its provision for motor finance redress.
A 3% fall for the price of gold weighed on Frensillo and Endeavour Mining as their shares retreated 6%.
Shell and BP regained momentum following Brent crude’s price rise to $107 a barrel, with their shares up 3% and 2% respectively.
SSE edged up 10.3p to 2686.3p, despite lifting its earnings guidance for the year just ended.
Stocks under pressure as stagflation fears rise
07:47 , Graeme EvansWall Street futures point to a 1.2% fall by the S&P 500 index after President Trump’s address left traders fearing an escalation of the Middle East conflict.
Brent crude touched $108 a barrel after a rise of 6.8%, while Japan’s Nikkei 225% lost 2.4% after yesterday’s strong session.
IG said: “Trump said the US would “finish the job” within weeks but offered no clear ceasefire timeline or diplomatic path, leaving markets uneasy about further escalation and sustained military activity in the region.
“Risk assets sold off sharply, with Asian indices down as much as 3.6% and US and European futures also weaker, as investors responded to fading hopes of a near-term resolution.”
The US dollar reversed recent declines as investors moved out of risk-sensitive currencies and into defensive positions.
IG said the combination of rising oil prices and geopolitical tension renewed fears of stagflation in the global economy.
The trading platform added: “Investors are expected to remain cautious in the near term, with attention on supply risks, developments in the Middle East and upcoming US payrolls data for further direction.”
Lloyds makes no change to motor finance provision
07:14 , Graeme EvansLloyds Banking Group today disclosed no change in the amount it is setting aside to cover the cost of motor finance redress.
The statement by the lender follows its assessment of Monday’s FCA’s announcement on the final rules of the industry-wide compensation scheme.
Lloyds disclosed in October that it has set aside an additional £800 million, which took its total provision to £1.95 billion including operational costs.
The bank said today: “There remain a number of uncertainties including response rates, operational costs and any litigation.
“The ultimate outcome may also differ dependent upon potential actions by various parties, including legal proceedings and complaints. An update will be provided as appropriate with the first quarter results at the end of April.
“The group remains committed to ensuring customers receive appropriate and timely redress.”
Oil price resumes rise, FTSE 100 seen lower
07:03 , Graeme EvansOil prices have jumped 6% and the FTSE 100 index is set to fall after an address by President Trump dealt a blow to earlier hopes of Middle East peace.
His vow to hit Iran “extremely hard” sent Brent crude up to $107.65 a barrel, having fallen back in dealings yesterday.
Stock markets have given up some of this week’s gains, with the Nikkei 225 down by more than 2% and the FTSE 100 set for a fall of 0.9%.
London’s top flight last night closed 1.9% higher at 10,364.79 while the FTSE 250 lifted 2.3%.
US futures are more than 1% lower after the Dow Jones Industrial Average yesterday rose 0.5%, the S&P 500 index added 0.7% and the Nasdaq Composite improved 1.2%.
Deutsche Bank said: “After rallying sharply over the previous two sessions, market sentiment has deteriorated overnight after President Trump’s much anticipated address last night delivered little to nothing new on potential timelines or conditions for ending hostilities against Iran.”
