FTSE 100 today: Stocks retreat as Gulf strikes send oil toward $100

The FTSE 100 dipped slightly on Wednesday amid escalating tensions between the U.S. and Iran in the Gulf, with oil prices inching closer to the $100 mark. The index lost 0.28%, while Germany's DAX fell 0.52% and France's CAC 40 declined 0.70%. Sterling gained 0.19% against the dollar, while Brent crude and WTI oil rose 2.1% and 1.71% respectively.

Gold futures increased by 0.22% to $4,448.94, and spot gold climbed 1.14% to $4,404.93. The U.S. Central Command reported destroying five Iranian crude carriers after Iran's Islamic Revolutionary Guard Corps (IRGC) launched ballistic missiles at a U.S. Navy warship and other targets. Iran claimed missile strikes on U.S. facilities in Jordan, but Jordan's military said it intercepted most of the missiles.

Oman and Iran are reportedly preparing a temporary shipping corridor through the Strait of Hormuz. CENTCOM released footage of an Iranian vessel sinking in the Gulf of Oman, and Hormuz traffic data showed fewer than average vessels passing through. Market analysts noted that Middle East tensions continue to impact investor sentiment, with some optimism that oil prices reaching a "pain point" might prompt a deal with the Trump administration.