London’s mid-cap stocks declined to almost a one-month low on Wednesday, continuing their downward trend as UK bond yields reached 18-year highs amid renewed inflation concerns following recent exchanges of strikes between the U.S. and Iran in the Middle East.

The blue-chip FTSE 100 index fell 0.56% to 10,728.90 points by 10:10, while the midcap FTSE 250 slipped 0.8% to its lowest since August 4.

• The yield on the UK’s 10-year gilt increased to its highest level since June 2008, reflecting a sell-off in global bonds.
• “This rise in yields, which ​will eat directly into the government’s fiscal headroom, raises the risk of ​tax hikes in the autumn, even before accounting for any additional spending increases that ‌Burnham ⁠seems likely to pursue,” said Matthew Ryan.
• Oil prices hovered around $95 a barrel, reaching a level not seen in over a month, as tensions escalated in the Gulf region between the U.S. and Iran.
• Industrial metal miners dropped 1.2%, as copper and zinc prices were pressured by a stronger dollar.
• Rio Tinto slipped 1.3%, while Glencore experienced a decline of 1%.
• Media shares experienced sectoral losses, declining by 2%, with the advertising group WPP reporting a decrease of 2.8%.
• Britain’s economy is projected to expand at a slightly accelerated pace in 2026, having absorbed the initial repercussions of the Iran conflict; however, businesses continue to exhibit caution regarding investment, according to a statement from the British Chambers of Commerce on Tuesday.
• Among the top decliners, education company Pearson fell 2.5% after broking Citigroup cut its rating to “neutral” from “buy”.
• Limiting losses, heavyweight banks gained 0.3%.