Britain’s FTSE 100 experienced a decline on Thursday, influenced by rising oil prices and diminishing expectations for renewed U.S.-Iran peace negotiations, which impacted the overall market. Meanwhile, investors were analyzing a series of corporate earnings reports. The blue-chip FTSE 100 index dropped 0.8% to 10,388.84 points by 10:40 am, while the midcap FTSE 250 fell 1.1%.

Brent crude futures have exceeded $100 per barrel, following Iran’s increased control over the Strait of Hormuz, with statements indicating that the waterway will remain closed until the U.S. removes its naval blockade. The increase in oil prices has put pressure on travel and leisure stocks, with Wizz Air and Carnival experiencing declines of 3% and 2.4%, respectively.

• Travel retailer WH Smith opens new tab plunged 10.6% after it cut its annual profit forecast and suspended dividend.
• Meanwhile, heavyweight banks Barclays and HSBC fell 2.1% and 0.9%, respectively.
• Among miners, Fresnillo declined 6.9%, and Rio Tinto fell 2.1%, tracking precious and base metals.
• The proportion of British companies indicating increased costs surged to an unprecedented level this month, indicating elevated input expenses and escalating inflation as the repercussions of the Iran conflict impact the economy, according to a survey.
• Market participants are currently assessing a 70% likelihood of the Bank of England increasing interest rates in June, a notable rise from the 40% probability observed last week, based on data from LSEG.
• The FTSE 100 has declined by 2.7% this week, positioning itself to negate almost all the gains that were driven by optimism surrounding the U.S.–Iran ceasefire announced earlier this month.
• Among other stocks, supermarket group Sainsbury fell 5.2% after it warned that the Iran war could cloud its outlook, mirroring concerns raised by peer Tesco earlier in the week. Tesco shares experienced a decline of 3% on Thursday.
• The London Stock Exchange Group opens new tab gained 1.9% after forecasting annual revenue growth at the upper end of its range.
• Software firm Relx opens new tab was down 1.3% after the company reaffirmed its full-year outlook.