London equities slipped on Thursday as geopolitical risks in the Strait of Hormuz boosted energy prices and weighed on risk appetite. The FTSE 100 fell 0.03%, while Germany’s DAX and France’s CAC 40 declined 0.31% and 0.57%, respectively.
Brent crude rose 2.4% to $93.83 a barrel, extending gains after reports that the U.S. had conducted nightly shipping convoys through the Strait of Hormuz for several weeks. The operation, backed by U.S. air cover, moved roughly 10 million barrels of oil daily—about half the pre-conflict volume—along the Omani coast, according to Axios, citing two unnamed U.S. officials. WTI crude advanced 2.8% to $86.82.
Gold prices eased, with December futures down 0.4% at $4,527.11 and spot gold falling 1.1% to $4,472.65 an ounce. The U.S. 10-year Treasury yield dropped 6 basis points, reflecting a flight to safety.
Among individual stocks, Anglo American declined 1.2%, while Antofagasta and Rio Tinto gained 0.1% and 1.9%, respectively. JD Sports led the FTSE 100 fallers, tumbling 14.3% after lowering its full-year profit outlook for fiscal 2026/27, citing a sharp second-quarter sales decline, particularly in North America.
Hays cut its full-year dividend by 65% and announced plans to exit seven markets, citing weak hiring demand that has weighed on permanent recruitment fees. The company’s shares were down 4.2%.
U.S.-Iran tensions escalated as Iran’s Islamic Revolutionary Guard Corps (IRGC) warned it would deploy more precise and destructive weapons if fighting resumed. IRGC spokesman Brig. Gen. Hossein Mohebi said Iran had continued upgrading missile systems, including warheads, accuracy, and range, during the earlier conflict. Iran also warned Saudi Arabia would be unable to contain Yemen’s Houthis.
U.S. President Donald Trump criticized South Korea for declining to assist in securing the Strait of Hormuz, noting it sources 60% of its oil from the region. He announced a new economic campaign, dubbed "Economic D-Day," threatening severe consequences for nations aiding Iran’s financial institutions, banks, airports, or shipping registries. Iranian Foreign Minister Abbas Araghchi dismissed the threats, calling them a distraction from U.S. economic issues, including record debt and rising interest costs.
The U.S. Treasury said it would at least double its long-end bond buyback operations to a minimum of $4 billion per operation in the 10–20-year and 20–30-year sectors, up from $2 billion previously. Jefferies strategist Mohit Kumar said the move signaled an effort to control long-end yields, pushing 10-year yields lower and supporting gold and crypto amid a weaker dollar. Kumar maintained a long gold stance.
FOMC minutes were described as "less hawkish than feared," with most members anticipating moderating inflation for the remainder of the year. ING noted that copper’s supply squeeze had eased as LME inventories rose and backwardation narrowed, suggesting recent declines were driven by risk-off sentiment tied to Strait of Hormuz tensions rather than worsening fundamentals.
