FTSE 100 today: Stocks fall as miners drag, Iran threat lifts oil

On Thursday, British stocks slipped slightly as metal prices declined and Iran's threat to broaden attacks on U.S. bases sent oil prices soaring. The FTSE 100 fell by 0.26%, Germany's DAX dropped 1.04%, and France's CAC 40 decreased by 1.4%. The British pound remained unchanged at $1.3391. Miners continued to lead the market's decline, as metal prices remained depressed.

Silver dropped 5.04%, U.S. copper fell 2.74%, platinum declined by 3.26%, and palladium decreased by 2.81%. Among London-listed commodities, copper experienced a 1.98% decrease, zinc dropped 2.02%, nickel fell 1.62%, and aluminium decreased by 0.89%. Meanwhile, Brent crude oil rose 2.78% to $111.84 per barrel, while WTI crude gained 1.67% to $98.77 per barrel.

Gold futures experienced a 2.09% decline, settling at $4,063.37 per ounce, while spot gold slipped 2.26% to $4,047.78, owing to inflation fears that were exacerbated by the rising oil prices. Iran's chief security official, Mohsen Rezaei, stated that Tehran supports the Houthi-led resistance but is only accountable for decisions in the Strait of Hormuz, not the Bab el-Mandeb strait.

Israeli Prime Minister Benjamin Netanyahu refuted a Financial Times report claiming that President Donald Trump had halted an Israeli strike on Iran. In response to the U.S. urging vessels to navigate through mined waterways, the Islamic Revolutionary Guard Corps' navy warned of an escalation that could extend to U.S. bases in the region.

The IRGC navy reported that it had disabled four vessels involved in ship-to-ship oil transfers and three other ships hit mines west of Hormuz. U.S. President Donald Trump declared that negotiations were not on the table, and that the confrontation would occur "fairly soon," adding that most people believed it would happen after the election.

The Houthis claimed attacks on Saudi Arabia's defense ministry in Riyadh, Aramco in Yanbu, and the Abha and Dammam airports over a 48-hour period. Saudi aviation authorities reported that a Saudi citizen and an Indian resident died in the Dammam attack, with eight others injured and traffic returning to normal. The Saudi-led coalition stated that it intercepted four drones over Riyadh and Medina.

The International Monetary Fund projected that output in the Middle East, North Africa, and Pakistan would contract by 1.3% in 2023, but then rebound by 6.6% in 2027 if the conflict subsides early in 2027, citing exceptionally high uncertainty.