London close: Stocks fall on US-Iran impasse as oil prices climb

(Sharecast News) - London's FTSE 100 fell for the fourth straight day on Thursday as another jump in the price of oil dampened sentiment after Donald Trump said there was "no time frame" for ending the war in Iran.

The Footsie finished 0.2% lower at 10,457.01, its lowest finish since 7 April, with blue chips Fresnillo and Sainsbury among the worst performers of the day.

Geopolitical tensions in the Middle East also remained in focus after a lack of commitment from Iran reportedly led to JD Vance cancelling his trip to join peace talks. Iran state media also reported that Iranian negotiators declined to attend, calling talks with the US a "waste of time".

Investors were mulling a report that the US military had intercepted at least three Iranian-flagged tankers in Asian waters. According to Reuters, citing shipping and security sources, the US was redirecting them away from their positions near India, Malaysia and Sri Lanka.

Meanwhile, Trump said there is "no time pressure" on the ceasefire with Iran, and added that it was "not true" that he wanted to end the war before the US midterm elections in November.

Brent and WTI crude prices were both up 1.6% at $103.49 and $94.41 a barrel, respectively but the close of play in London.

"Brent crude has risen every day this week and now sits at over $103 per barrel. Shipping in the Gulf remains severely disrupted, with the US intercepting at least three Iranian tankers and Iran restricting nearly all international traffic through the Strait of Hormuz. Washington warned that it could take up to six months to clear the waterway of mines," said Derren Nathan, head of equity research at Hargreaves Lansdown.

On home shores, the S&P Global flash UK composite PMI rose to 52.0 this month from 50.3 in March, with the services PMI rising to 52.0 from 50.5 and the manufacturing PMI rising to 51.8 from 49.2. However, the surveys showed that cost inflation saw its biggest month-on-month jump in 30 years as customers brought orders forward amid expectations of price hikes.

LSEG gains, Sainsbury's drops

LSEG rallied as it lifted its full-year revenue outlook following record first-quarter venue. The company now expects FY revenue growth to be in the upper half of its 6.5% to 7.5% guidance range.

Sainsbury's slumped as the supermarket retailer cautioned that full-year profits could fall this year amid an uncertain outlook due to the impact of the war on Iran. Tesco was also in the red.

Entain slipped after Bank of America downgraded the Ladbrokes owner to 'neutral' from 'buy' and cut the price target to 700p from 870p as it pointed to rising competition from prediction markets and slowing UK growth.

Falling gold and silver prices weighed heavily on Fresnillo, while fellow miners Anglo American and Antogasta gained.

On the FTSE 250, travel outlet retailer WH Smith dropped sharply after cutting its full-year profit forecast and suspending its dividend, citing the impact of the Iran war on flight schedules to the Middle East.

Heading the other way was UK-based master franchise Domino's Pizza Group after saying that trading had marked "an encouraging start to the year", with year-on-year growth across total system sales, likeforlike sales and orders.

Market Movers

FTSE 100 (UKX) 10,457.01 -0.19%

FTSE 250 (MCX) 22,764.52 -0.90%

techMARK (TASX) 5,894.12 -0.55%

FTSE 100 - Risers

Anglo American (AAL) 3,777.00p 4.08%

Melrose Industries (MRO) 509.60p 1.92%

Rolls-Royce Holdings (RR.) 1,160.20p 1.90%

Vodafone Group (VOD) 116.25p 1.88%

BT Group (BT.A) 220.25p 1.78%

Reckitt Benckiser Group (RKT) 4,775.00p 1.77%

Haleon (HLN) 351.60p 1.65%

M&G (MNG) 297.60p 1.60%

British American Tobacco (BATS) 4,206.00p 1.52%

SSE (SSE) 2,661.50p 1.45%

FTSE 100 - Fallers

Fresnillo (FRES) 3,426.00p -6.39%

Legal & General Group (LGEN) 253.65p -5.57%

The Sage Group (SGE) 888.20p -3.90%

Sainsbury (J) (SBRY) 340.10p -3.68%

Experian (EXPN) 2,779.50p -3.54%

3i Group (III) 2,676.50p -3.48%

Rightmove (RMV) 438.00p -3.23%

Convatec Group (CTEC) 224.60p -3.02%

Smith & Nephew (SN.) 1,184.50p -2.47%

Intertek Group (ITRK) 4,846.00p -2.30%

FTSE 250 - Risers

Domino's Pizza Group (DOM) 202.00p 10.14%

Hikma Pharmaceuticals (HIK) 1,402.50p 6.09%

Helios Towers (HTWS) 202.00p 1.92%

Applied Nutrition (APN) 223.50p 1.82%

W.A.G Payment Solutions (EWG) 120.60p 1.69%

Gamma Communications (GAMA) 951.00p 1.54%

Diversified Energy Company (DI) (DEC) 1,148.00p 1.23%

RIT Capital Partners (RCP) 2,225.00p 1.14%

Sequoia Economic Infrastructure Income Fund Limited (SEQI) 82.00p 0.99%

Tritax Big Box Reit (BBOX) 156.50p 0.90%

FTSE 250 - Fallers

WH Smith (SMWH) 571.00p -9.15%

Man Group (EMG) 245.60p -7.32%

Ocado Group (OCDO) 203.90p -6.34%

Kainos Group (KNOS) 834.00p -5.76%

Wickes Group (WIX) 207.50p -5.25%

Rank Group (RNK) 101.60p -4.69%

Oxford Nanopore Technologies (ONT) 115.30p -4.55%

Pan African Resources (PAF) 147.54p -4.38%

Harworth Group (HWG) 138.00p -4.34%

Bridgepoint Group (Reg S) (BPT) 268.40p -4.14%