Middle East tensions push oil up, lift UK energy as FTSE slips

The FTSE 100 slipped 0.2% to 10,350.5 by 1013 GMT on Wednesday after an Iranian missile struck Kuwait’s main airport and US forces carried out strikes near the Strait of Hormuz. Brent and US crude each rose roughly 3%, and UK-listed energy stocks gained 1.3%.

The mid-cap FTSE 250 fell 0.1% as trading tracked developments in the Gulf and the impact on energy markets.

Energy was the strongest sector as crude prices rose. Healthcare and mining were among the weakest sectors on the index.

AstraZeneca dropped 2.2%, contributing to losses in healthcare. Precious metal and industrial metal miners both retreated by more than 1% as metal prices eased.

Asset manager Ninety One fell 6.4% after it reported smaller-than-expected net inflows in the second half of 2026. Bridgepoint Group declined 3.4% following reports that Switzerland-based Partners Group would cap withdrawals from an $8.6 billion private equity fund.

Retailers outperformed. Discount chain B&M rose 16.1% after a smaller-than-expected fall in annual pretax profit. Online fashion retailer Debenhams Group jumped 22.3% after reporting a 0.5% rise in first-quarter gross merchandise value and a substantial increase in core profit.

Data showed British services firms faced mounting pressure in May, with rising costs linked to the Iran conflict affecting business sentiment. The OECD revised its outlook for the UK economy, scaling back its assessment of the immediate impact this year and forecasting a weaker recovery in 2027 compared with its late-March projections.

Gains in the energy sector did not fully offset losses elsewhere, leaving the FTSE 100 modestly lower for the session.