British stocks fell on Wednesday as the military standoff between the United States and Iran escalated, pushing up oil prices, while weak Chinese growth data added to investor caution.
The FTSE 100 index was down 0.60% as of 10:18 a.m. Germany's DAX index fell 0.90%, while France's CAC 40 index slipped 0.28%. The British pound rose 0.17% to $1.3414.
China’s economy grew 4.3% year-on-year in the second quarter, its weakest growth rate since the fourth quarter of 2022, according to data released by the National Bureau of Statistics.
This figure came in below the 4.5% forecast in a Reuters poll and slowed compared to 5% growth in the first quarter, falling below Beijing’s annual target range of between 4.5% and 5%, amid accelerating declines in investment and weak consumption.
China is the largest end market for the mining sector, which carries significant weight in the FTSE 100 index.
This weakness in growth coincided with the fourth consecutive night of US military operations against Iran. US Central Command announced that its forces had conducted strikes against Iranian military targets near the Strait of Hormuz on Tuesday, targeting missile and drone sites, naval capabilities, and coastal defense systems in an operation that lasted seven hours. It also confirmed the reimposition of a naval blockade on ships transiting Iranian ports that same day, supported by more than 20 US warships and hundreds of military aircraft deployed in the region.
US President Donald Trump told Fox News on Tuesday that the campaign would escalate further, warning that Iranian power plants and bridges would be targeted next week unless Tehran returned to the negotiating table.
The Iranian Ministry of Health announced that more than 260 people were injured in the latest round of US strikes, while the Iranian Revolutionary Guard reported that it targeted US military assets in Bahrain and Kuwait in retaliation, and the Jordanian army announced that it had intercepted three ballistic missiles launched from Iranian territory.
The UAE Ministry of Defense confirmed that two UAE-flagged tankers, Mombasa and Bahia, were hit by Iranian cruise missiles while crossing the southern strait; the Indian government announced the death of an Indian sailor from among the joint crew of the two ships and the injury of several others.
The U.S. Treasury Department separately imposed sanctions on more than 50 individuals, companies, and vessels linked to an alleged Iranian oil smuggling network, with Treasury Secretary Scott Bisent saying the move was aimed at disrupting a vital financial lifeline that feeds the Iranian regime.
Brent crude rose 1.4% to $85.90 a barrel, while US West Texas Intermediate (WTI) crude climbed 1.2% to $80.32.
Gold futures fell 0.85% to $4,034.40 an ounce, while spot gold dropped 0.60% to $4,029.69 an ounce.
UK Markets Summary
B&M : The company reported a 2% increase in group revenue for the first quarter, supported by strong growth in France and Heron Foods, which offset weaker-than-average sales in its core UK business.
Barratt Redrow : The company achieved housing completions for financial year 2026 at the upper limit of guidance, and announced a £400 million share buyback program for financial year 2027.
Thames Water : The company announced that it has sufficient funding until the fourth quarter of 2026, and continues to work on a recapitalization plan with creditors, regulators and the government.
Rio Tinto : The company reported a 3% year-on-year increase in its copper equivalent production in the first half, while maintaining its annual production guidance across key commodities.
Antofagasta : The company announced a 9.5% year-on-year decrease in its copper production in the first half due to declining output at its main mines, while maintaining its annual production forecast.
Hunting : The company maintained its full-year EBITDA guidance after first-half performance met expectations, supported by strong demand in the subsea and drilling business segments.
ICG : The company recorded a 10% year-on-year increase in fee-generating assets under management, driven by strong funding for its flagship European structured capital fund.
