UK shares experienced a decline on Wednesday, as risk sentiment was adversely affected by a resurgence of hostilities in the Middle East, which led to an increase in crude oil prices. The lack of progress towards a peace deal has left investors feeling uneasy. The blue-chip FTSE 100 index fell 0.2% to 10,350.5 points by 1013, while the midcap FTSE 250 slipped 0.1%.

• Hostilities in the Gulf have escalated once more, as an Iranian missile strike resulted in damage to Kuwait’s airport, while the U.S. military conducted operations in proximity to the Strait of Hormuz.
• Oil prices surged approximately 3% as tensions in the Middle East intensified, resulting in a 1.3% increase in the shares of UK energy firms.
• Healthcare was among the top drags with drugmaker AstraZeneca down 2.2%.
• Precious metal miners fell over 1% as metal prices pulled back, while industrial metal miners experienced a similar decline of over 1%.
• Investment manager Ninety One experienced a decline of 6.4% as analysts observed that net inflows during the second half of 2026 were smaller than anticipated.
• British private equity firm Bridgepoint Group fell 3.4% after Switzerland’s Partners Group announced it is capping withdrawals from a $8.6 billion private equity fund.
• Shares of B&M added 16.1% after the British discount retailer reported a smaller-than-expected drop in annual pretax profit.
• Debenhams Group opened new tab jumped 22.3% after the online fashion retailer returned to growth with a 0.5% rise in first-quarter gross merchandise value along with a “substantial” increase in core profit.
• In May, British services firms faced challenges as the pressures stemming from the Iran war led to increased costs and dampened optimism.
• The OECD has revised its previous evaluation regarding the short-term effects of the Iran conflict on the UK’s growth and inflation for this year. However, it anticipates a more subdued recovery in 2027 compared to its earlier projections made in late March.