Story
FTSE 100 Falls on Middle East Tensions, AstraZeneca Drug Trial Setback
Summary
The UK's benchmark stock index declined as investors reacted to escalating military conflict between the U.S. and Iran, while a failed late-stage drug trial sent shares of AstraZeneca sharply lower.
London's FTSE 100 index fell on Thursday morning, pressured by rising geopolitical tensions in the Middle East and a significant slump in heavyweight pharmaceutical stock AstraZeneca following a disappointing clinical trial result.
As of 07:30 GMT, the FTSE 100 was down 0.49%, underperforming its European counterparts, with Germany’s DAX and France’s CAC 40 posting gains, according to Investing.com data.
Geopolitical Tensions Weigh on Sentiment
Investor sentiment soured after the U.S. and Iran exchanged military strikes. U.S. Central Command reported that it struck approximately 90 Iranian military targets overnight in its second consecutive night of operations. The strikes targeted air defense systems and naval infrastructure along Iran's coastline, aimed at reducing threats to commercial shipping in the Strait of Hormuz.
In response, Iran's Revolutionary Guard claimed attacks on U.S.-allied states in the Gulf, with Kuwait's military confirming it was intercepting incoming drones and missiles. The escalation follows a declaration by U.S. President Donald Trump that a ceasefire reached last month was "over" after Tehran reportedly resumed attacks on commercial tankers.
AdMarket and Corporate Movers
The risk-off mood boosted safe-haven assets, with spot gold rising 0.74% to $4,107.82 an ounce. In contrast, Brent crude oil futures edged down 0.53% to $77.58 a barrel.
On the corporate front, several UK-listed companies made significant announcements:
- AstraZeneca shares slumped after the company announced its experimental heart drug, Wainua, failed to meet its primary goal in a late-stage trial.
- Capita said failures on its civil service pension contract would reduce its annual adjusted operating profit by between £25 million and £40 million.
- Computacenter provided an upbeat forecast, stating it expected first-half adjusted pretax profit to nearly double and that full-year 2026 results would be "comfortably ahead" of market expectations.