UK equities slip as Middle East tensions lift oil, weigh on risk sentiment

Traders Union
All News
Financial News
UK equities slip as oil rises

All news

Editors' Picks

Crypto News

Financial News

Market Voices

Billionaires

Companies

Broker News

Regulators News

Ashutosh Sureka

Yesterday

UK equities slip as Middle East tensions lift oil, weigh on risk sentiment — UK equities pressured by oil

Rising geopolitical tension in the Middle East is pressuring UK stocks on Wednesday, with higher crude prices and weaker investor appetite pushing the main indexes lower. Gains in energy shares limit some of the decline, but losses in healthcare, mining and asset management keep the broader market under pressure.

Highlights

FTSE 100 declines 0.2% to 10,350.5 and FTSE 250 slips 0.1% as Gulf tensions depress risk sentiment and boost oil by about 3%.
Energy firms gain 1.3% on higher oil, but AstraZeneca drops 2.2% and Ninety One tumbles 6.4% on weak inflows, while Bridgepoint falls 3.4% after Partners Group caps withdrawals.
B&M surges 16.1% and Debenhams Group jumps 22.3% on strong profit updates, while the OECD revises UK economic recovery outlook lower for 2027 amid Iran war fallout.

Market moves and sector performance

As reported by Reuters, the FTSE 100 falls 0.2% to 10,350.5 points by 1013 GMT, while the midcap FTSE 250 slips 0.1% as renewed Gulf hostilities unsettle investors.

An Iranian missile attack damages Kuwait's airport, and the U.S. military carries out strikes near the Strait of Hormuz. Oil prices jump about 3% as the regional situation escalates, helping lift shares of UK energy firms 1.3% higher.

Healthcare is among the biggest drags, with AstraZeneca down 2.2%. Precious metal miners and industrial metal miners each fall more than 1% as metal prices retreat.

Investment manager Ninety One drops 6.4% after analysts point to smaller-than-expected net inflows during the second half of 2026. Bridgepoint Group loses 3.4% after Switzerland's Partners Group says it is capping withdrawals from an $8.6 billion private equity fund.

Company updates and UK economic backdrop

Retail stocks provide some support to the market. B&M climbs 16.1% after the discount retailer reports a smaller-than-expected drop in annual pretax profit, while Debenhams Group jumps 22.3% after returning to growth with a 0.5% rise in first-quarter gross merchandise value and a substantial increase in core profit.

On the economic front, British services firms buckle in May as the strains of the Iran war raise costs and hurt optimism. The OECD also scales back an earlier assessment of the immediate impact of the Iran war on British growth and inflation this year, but says it expects less recovery in 2027 than in its late-March forecasts.

Our earlier coverage tracked how renewed strikes between Iran and the U.S. around Kuwait, Bahrain and Iran’s Qeshm Island near the Strait of Hormuz quickly pushed oil prices higher. We noted that the Hormuz flashpoint amplifies supply-risk fears, with each new attack raising the odds of tighter energy expectations and broader inflation pressure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.