𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Stock prices in London and Europe closed firmly in the red on Thursday as markets continued to track developments in the Iran war, and digest this week’s interest rate decisions so far, before China’s is released later.

The US Federal Reserve left interest rates unchanged late on Wednesday, as did the European Central Bank and the Bank of England on Thursday. The People’s Bank of China releases its own rate decision at 1.15am UK time on Friday.

The World Trade Organisation (WTO) has warned, meanwhile, that the Middle East war could weigh heavily on already slowing global trade, with merchandise trade volume potentially growing just 1.4% this year, compared to 4.6% in 2025.

“Sustained increases in energy prices could increase risks for global trade, with potential spill-overs for food security and cost pressures on consumers and businesses,” WTO chief Ngozi Okonjo-Iweala warned.

Speaking of energy, US Treasury secretary Scott Bessent has said that Washington might “unsanction” Iranian oil that is already being shipped.

His comments to Fox Business came as energy prices made a renewed surge, after Iran hit the world’s biggest liquefied natural gas facility in Qatar and threatened to destroy the region’s energy infrastructure.

Mr Bessent added in the interview that the US government could also release more oil from its strategic reserves.

Meanwhile, President Donald Trump’s administration is not considering a ban on oil exports, a US official told news agency AFP, as the government scrambles to contain surging energy costs.

“Oil and gas export restrictions are not under consideration,” the Trump administration official said.

Brent oil was quoted at 110.46 US dollars a barrel at the time of the London equities close on Thursday from 108.21 dollars late on Wednesday.

The International Monetary Fund said it was monitoring the impacts of the war in Iran on global inflation and output, but that no countries had so far approached it for emergency assistance related to the conflict.

“If prolonged, higher energy prices will lead to higher headline inflation,” said IMF chief spokesperson Julie Kozack at a press briefing.

The FTSE 100 index closed down 241.79 points, 2.4%, at 10,063.50. The FTSE 250 was down 520.73 points, 2.4%, at 21,560.04, and the AIM all-share was down 25.36 points, 3.4%, at 727.85.

Oil major BP was the sole FTSE 100 riser, up 4.3%, while Shell lost 0.3%.

Gold miners were among the FTSE 100’s worst performers, with Endeavour down 7.9%, Fresnillo down 6.7%, and Antofagasta down 5.0%.

Gold was quoted lower at 4,603.53 dollars an ounce against 4,875.60 dollars.

While geopolitical tensions remain elevated, the resulting increase in energy prices has raised inflation concerns, reducing the likelihood of near-term rate cuts,” DHF Capital’s Bas Kooijman commented. “This has temporarily weighed on gold, as higher yields make non-interest-bearing assets less attractive.

“It is important to note that this movement reflects short-term market dynamics and profit-taking after record highs, rather than a change in gold’s long-term fundamentals.”

On AIM, Central Asia Metals lost 5.6%, after the miner reported a 2025 pre-tax loss of 58.5 million dollars (£43.7 million) from a 77.2 million dollars (£57.7 million) profit a year earlier, despite revenue rising, and declared a total dividend of 12p, down from 18p.

It also guided for between 12,000 and 13,000 tonnes of copper, 18,000 to 20,000 tonnes of zinc-in-concentrate, and 26,000 to 28,000 tonnes of lead-in-concentrate 2026 production. This compares with 13,311 tonnes of copper, 17,881 tonnes of zinc-in-concentrate, and 25,156 tonnes of lead-in-concentrate in 2025.

Sancus Lending soared 49%.

The alternative financial services provider said pre-tax profit jumped to £1.2 million in 2025 from £130,000 a year ago, while revenue climbed 32% to £22.1 million, and that the macroeconomic environment remained mixed while several structural trends supported its outlook.

Sancus cited continued undersupply of housing across the UK and Ireland, increasing regulatory pressure on traditional banks, and growing institutional and private wealth appetite for secured private credit strategies, among others.

Among small caps, gold exploration firm Mila Resources fell 9.6%, but announced that reverse circulation drilling is underway at its Yarrol gold project, with around half of the planned 1,600-metre programme completed despite adverse weather.

Mila said diamond drilling has extended the mineralised system to about 300 metres depth, confirming structural controls on gold mineralisation, with further assay results pending.

In other UK news, Prime Minister Sir Keir Starmer is sticking to his “red lines” on links with the EU, Downing Street said after the mayor of London, Sadiq Khan, called for Labour to pledge to rejoin the bloc at the next election.

However, Chancellor Rachel Reeves, earlier this week, set out plans to follow more of the EU’s rules, saying closer alignment would help bring down prices and inflation.

In European equities on Thursday, the CAC 40 in Paris closed down 2.0%, while the DAX 40 in Frankfurt ended down 2.8%.

Meanwhile, the dollar traded lower.

The pound was quoted at 1.3367 dollars at the time of the London equities close on Thursday, higher compared to 1.3334 dollars on Wednesday. Against the euro, sterling rose to 1.1597 euros from 1.1577 euros a day prior. The euro stood at 1.1527 dollars, higher against 1.1517 dollars. Against the Japanese yen, the dollar was trading lower at 158.09 yen compared to 159.45 yen.

Stocks in New York were lower. The Dow Jones Industrial Average was down 0.8%, the S&P 500 index down 0.7%, and the Nasdaq Composite down 0.8%.

The yield on the US 10-year Treasury was quoted at 4.27%, widening from 4.22%. The yield on the US 30-year Treasury was quoted at 4.84%, narrowing from 4.86%.

The Pentagon is seeking 200 billion dollars (£149.4 billion) in additional funds for the Iran war, a senior administration official has said, according to PA. The Washington Post first reported the request.

The department sent the request to the White House, according to the official, who spoke on condition of anonymity to discuss the private information.

Asked about the figure at a press conference on Thursday, defence secretary Pete Hegseth did not directly confirm the figure, saying it could change.

However, he said: “We’re going back to Congress and our folks there to ensure that we’re properly funded,” adding that it, “takes money to kill bad guys”.

Also, new US jobless claims fell more than expected last week, signalling continued resilience in the labour market, according to data released by the department of labour.

In the week ended March 14, initial claims for state unemployment benefits decreased by 8,000 to 205,000 from an unrevised 213,000 the week before. FXStreet had expected initial claims to stand at 215,000.

The highest stocks on the FTSE 100 were: BP, up 23.8p at 579.6p; Schroders, down 0.5p at 572.5p; Games Workshop, down 20.0p at 17,220.0p; Sage, down 1.40p at 835.8p; and Shell, down 11.5p at 3,450.0p.

The biggest fallers on the FTSE 100 were: Barratt Redrow, down 25.5p at 262.15p; NatWest, down 49.4p at 530.6p; Endeavour Mining, down 348.0p at 4,058.0p; M&G, down 23.6p at 278.5p; and Fresnillo, down 224.0p at 3,098.0p.

On Friday’s economic calendar, look out for UK public sector net borrowing, German producer inflation, and eurozone current account and trade data.

On Friday’s UK corporate calendar, JD Wetherspoon and Smiths Group report their half-year results.

Contributed by Alliance News