London pre-open: Stocks to dip as oil rises on fresh MidEast tensions; earnings roll in

(Sharecast News) - London stocks were set to dip at the open on Wednesday as oil prices rose amid renewed Middle East tensions, and as investors braced for a deluge of corporate releases.

The FTSE 100 was called to open around 11 points lower. At 0715 BST, Brent crude was up 3.9% at $87.37 a barrel and West Texas Intermediate was 3.9% higher at $82.31 after Iran launched an attack on US forces, while the US and Saudi Arabia launched joint strikes against Tehran-backed militias in Iraq.

The US Central Command said in a statement that the US had carried out the strikes "against Iran-aligned terrorists that the Islamic Revolutionary Guard Corps (IRGC) directed to attack US forces and Saudi energy infrastructure".

"US and Saudi fighter aircraft struck multiple terrorist logistics and weapons sites across eastern Iraq in a strong response to over 30 IRGC-directed aerial drone attacks in the last 72 hours," it said. "The unwarranted attacks against US forces were not successful."

Looking ahead to the rest of the day, investors will eye the latest policy announcement from the US Federal Reserve, which is widely expected to keep the federal funds rate at 3.50% to 3.75%.

Rabobank also expects the funds rate to be unchanged but said the Committee is more likely to discuss hikes than cuts.

"Fed Chair Kevin Warsh may get the 'family fight' that he has said he wanted," it said. "We could even see one or more dissents in favour of a hike. This would increase the risk of a hike at the next meeting in September. The lower-than-expected CPI inflation for June should have reduced the need for a hike at this meeting, but renewed hostilities in the Middle East could lead to a hike later this year.

"The FOMC statement could be largely identical to last month's, but the reaffirmation of the policy of maintaining ample reserves in the banking system may be superfluous this time. Kevin Warsh's press conference may be as uninformative as his debut in June."

On home shores, investors will be wading through a raft of earnings form the likes of Standard Chartered, Reckitt Benckiser, Rio Tinto and Aston Martin, among others.

Bakery chain Greggs reported a rise in first-half profit and sales as it pointed to growth in the grocery business and strong cost control.

In the 26 weeks to 27 June, pre-tax profit jumped 19.7% from the same period a year earlier to �76m, while operating profit was up 22.9% at �86.5m. Total sales came in at �1.1bn, up from �1.0bn.

Chief executive Roisin Currie said: "Greggs continued to outperform the market and has delivered an improved sales performance and strong cost control through the first half of 2026, resulting in profitable growth.

"We remain focused on opening shops in more catchments and introducing convenient ways for customers to pick up Greggs favourites, while broadening and innovating our menu in line with changing tastes and trends. We are making great progress in building the supply chain infrastructure that will support the significant growth opportunities that lie ahead. The board's expectations for the full-year outcome are unchanged."

Consumer goods giant Reckitt Benckiser said it had delivered a "strong" second quarter with broadbased acceleration, prompting the group to reiterate its fullyear outlook as momentum improved across regions, categories and its Mead Johnson Nutrition arm.

Reckitt's core likeforlike net revenue growth picked up to 4.2% in Q2, taking firsthalf growth to 2.7%, with volumes improving and price/mix remaining supportive.

For the six months ended 30 June, adjusted operating margins for core Reckitt and MJN came in at 23.6%, ahead of expectations, supported by the firm's Fuel for Growth programme, which mitigated stranded costs following its Essential Home divestment. First-half adjusted operating profits were down 15% year-on-year to �1.45bn, even as LFL net revenues were up 2.6%.