• FTSE 100 closes down 141.6 points at 10,670.06
• Dow, S&P 500 and Nasdaq all fall at the open as oil tops $100
• Energy stocks outperform as BP and Shell benefit from higher oil prices
• Gold rises $71 to $4,427 as yen hits seven-month high

Close

A bruising day for blue-chips ended with the FTSE 100 down 141.6 points at 10,670.06.

3:00pm: FTSE 100 remains under pressure

Wall Street opened lower as expected, with the Dow opening at 52,707.90,down by 78.2 points, S&P 500 at 7,660.68, down by 12.8 points and Nasdaq Composite at 26,325.06, down by 96.4 points, as oil above $100 fuelled inflation and interest-rate concerns.

The FTSE 100 remained under heavier pressure, down 114 points at 10,697 by 3pm.

Energy stocks were among the few risers as higher oil prices boosted BP and Shell, while banks and other sectors fell, reflecting broader risk aversion.

Spot gold rose $71.35 to $4,426.90 an ounce, as investors sought safe-haven assets amid escalating Middle East tensions, while the Japanese yen traded at a seven-month high against the dollar.

2:00pm:Â Footise continues to slide

The FTSE 100 continued to slide through the afternoon, falling 121 points, or 1.12%, to 10,691 at 2pm and trading close to its session low.

Broker activity was mixed across London’s large- and mid-cap stocks on Wednesday, with several notable changes to ratings and price targets.

Among FTSE 100 stocks, HSBC cut Burberry Group PLC (LSE:BRBY) to 'hold' with a 1,200p target, while RBC began coverage of AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) at 'outperform' with a 14,500p target.

Computacenter PLC (LSE:CCC), which is a FTSE 100Â stock, saw opposing calls.

Among other FTSE 250 stocks, Deutsche Bank cut Dunelm’s target to 1,000p from 1,050p, while JP Morgan reduced its target to 1,050p from 1,225p.

Overall, the broker moves point to a mixed picture, with notable caution towards some retailers and healthcare stocks but stronger conviction on selected pharmaceutical and recruitment names.

1:00pm: London's blue chip index remains down

The index has continued to weaken after briefly recovering from the open, and is now close to its session low.

Brent crude futures rose 2.93 points to $100.85 a barrel at this hour, remaining above the $100 threshold as escalating Middle East tensions fuel concerns over oil supplies.

Brent has hit a more than six-week high as attacks on energy infrastructure and shipping raise the risk of further disruption to regional exports.

The higher oil price is feeding concerns that inflation could remain elevated.

US stock futures were subdued, with Dow futures down 0.16%, S&P 500 futures flat and Nasdaq 100 futures up 0.04%.

Investors were also awaiting the US Treasury’s bond buyback announcement.

The Food and Drink Federation warned UK food inflation could reach 6.4% next July as higher fuel costs increase supply-chain expenses.

It called for government action to reduce industry costs.

FTSE 350 food producers were down 0.20% at 7,615.53, indicating some pressure on the sector as investors assess rising energy and supply-chain costs.

AB Foods was outperforming its wider sector despite the inflation warning. It rose 0.69% to 2,053p, up 14p.

UK two- and five-year gilt yields rose to one-week highs, with two-year yields at 4.629% and five-year yields at 4.727%, as markets reassessed the inflation outlook, reported Reuters.

Sterling remained firm, with the yen reaching a seven-month high and the dollar under pressure.

The pound edged towards two-week ​highs against the dollar.

The euro rose 0.18% to $1.1641 ahead of an expected European Central Bank rate rise on Thursday.

Amazon’s first sterling bond sale highlighted growing funding demand from technology companies as they finance the AI boom.

Hyperscalers have issued more than $200bn of debt this year, more than double their total for 2025, reports Reuters.

12.00 pm: FTSE losses deepen as Wall Street points lower

The FTSE 100 fell 95 points to 10,717, trading close to its session low.

Dow futures dropped 152 points, while S&P 500 and Nasdaq futures declined 0.2%.

Brent crude climbed above $100 a barrel as escalating US-Iran hostilities intensified fears of Gulf supply disruption.

11.00 am: Small caps follow wider market lower

Small-cap shares remained subdued as the wider London market extended its decline.

Sovereign Metals (Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML)): shares rose 4% after Kasiya research indicated $84 million in additional annual EBITDA.

Light Science Technologies (Light Science Technologies Holdings PLC (AIM:LST)): Secured £800,000 of additional passive fire-protection business since its June update.

Active Energy Group (Active Energy Group PLC (AIM:AEG, OTCID:AEUSF)): Targeting power-backed infrastructure developments of up to 100 megawatts across the Gulf.

Total Graphite (Total Graphite PLC (LSE:TGR, OTCQX:TGRHF)): Appointed Lycopodium (ASX:LYL) (Lycopodium (ASX:LYL)) to review and update the Montepuez graphite project feasibility study.

The FTSE SmallCap index fell 20 points to 8,142, while the AIM All-Share slipped 1 point to 796.

10.00 am: New chair lifts Aberdeen to top of FTSE risers

Aberdeen Group PLC (LSE:ABDN) led the FTSE 100 risers, climbing 2% to 252.6p after appointing Torbjörn Magnusson as non-executive director and chair-designate.

Magnusson, previously chief executive of Nordic financial group Sampo, will become chair after receiving regulatory approval. He also formerly chaired Nordea Bank and UK insurer Hastings Group.

The gain suggests investors welcomed his record of delivering growth and shareholder value as Aberdeen pursues its wealth and investment ambitions. Read Aberdeen’s announcement

The wider FTSE 100 remained 46 points lower at 10,766. Computacenter gained 1.8%, while Centrica, BP, SSE, Severn Trent and Shell also advanced.

9.00 am: FTSE recovers ground but oil concerns persist

The FTSE 100 recouped part of its opening loss but remained 0.27% lower at 10,782.52 shortly before 9 am.

The index had stood at 10,765.07 at market open and was nearly 38 points above its early low of 10,744.65.

Brent crude approached US$100 a barrel as escalating US-Iran hostilities and attacks on Saudi energy facilities raised fears of further supply disruption. BP gained 1.8%, although concerns that higher energy costs could prolong inflation continued to weigh on the wider market.

Sterling’s rise to around US$1.356 provided another headwind for internationally focused companies.

The FTSE 250 declined 0.14%, while the AIM All-Share edged 0.07% higher.

Computacenter led the blue-chip risers with a 3.2% gain, extending its advance following Tuesday’s results. Aberdeen rose 2.3%, followed by BP, Centrica and SSE.

8.00 am: FTSE falls despite renewed commodity strength

The FTSE 100 opened sharply lower on Wednesday as a stronger pound and renewed inflation concerns outweighed support from rising commodity prices.

London’s blue-chip index was down 46.59 points, or 0.43%, at 10,765.07 shortly after 8am. It traded between 10,744.65 and 10,768.07 during the opening minutes.

Sterling strengthened 0.15% to US$1.3560, close to its early high of US$1.3563. A firmer pound can weigh on the internationally focused FTSE 100 by reducing the sterling value of overseas earnings.

Oil prices moved higher, with Brent crude climbing 1.52% to US$99.41 a barrel and West Texas Intermediate gaining 1.19% to US$94.14.

The advance towards US$100 may support BP and Shell, but it also raises concerns that higher energy costs will add to inflation and keep interest rates elevated for longer.

Gold edged 0.14% higher to US$4,445.19 an ounce, while silver gained 0.42% to US$67.28.

Copper was virtually unchanged at US$6.7768 per pound, remaining close to recent record levels.

The opening decline suggests investors are focusing on the potential inflationary consequences of higher oil prices and the headwind from sterling, with commodity strength so far proving insufficient to lift the wider index.

7.00 am: Surging oil prices unsettle global markets

The FTSE 100 is expected to open sharply lower as Brent crude’s advance towards US$100 a barrel fuels concerns about inflation and interest rates.

IG expects London’s blue-chip index to fall approximately 51 points, or 0.5%, to 10,760. The benchmark closed Tuesday down 10 points at 10,811.66.

Brent crude traded around $99.01 a barrel after briefly approaching $99.70, following US strikes near Iran’s Kharg Island and attacks on Saudi Arabian energy facilities.

The escalating threat to Middle Eastern supplies pushed West Texas Intermediate above US$95 and weighed on global equities. Higher oil prices could support BP and Shell but are likely to pressure airlines, retailers and other energy-intensive businesses.

Wall Street finished firmly lower as investors considered the inflationary consequences of the oil rally. The Dow Jones Industrial Average dropped 1.2%, the S&P 500 declined 0.6%, and the Nasdaq Composite lost 0.3%. US market close

Government bond yields remained elevated. The US 10-year Treasury yield stood around 4.79%, while concerns about Britain’s public finances persisted after the UK sold a 30-year gilt at a record yield of 5.8168%.

Copper provided a potential counterweight for London’s miners after three-month prices reached a record $14,728 a tonne. The rally has been driven by supply disruptions, declining mine output, tariff uncertainty and growing demand from electricity grids and artificial intelligence infrastructure.

Asian markets were mixed. Japan’s Nikkei 225 declined 0.3%, the Shanghai Composite slipped 0.1% and Hong Kong’s Hang Seng fell 0.5%, while South Korean shares advanced. Australia’s S&P/ASX 200 was marginally lower.

Sterling remained firm at approximately $1.3551, creating an additional headwind for the internationally focused FTSE 100 by reducing the translated value of overseas earnings.

Gold retreated to around $4,394 an ounce, while Bitcoin traded near $79,050.

Energean, Gym Group and WAG Payment Solutions are scheduled to publish half-year results, while Frontier Developments and Pan African Resources are due to release full-year figures