FTSE 100 Stalls as US-Iran Tensions Escalate and UK Inflation Rises

The FTSE 100 exhibited a mixed performance on Wednesday, reflecting a cautious stance from investors as they monitored diplomatic frictions between Washington and Tehran. The benchmark index fluctuated throughout the session, eventually settling at 10,499.77, a marginal gain of 1.68 points. Market sentiment is heavily influenced by U.S. President Donald Trump's decision to unilaterally extend a two-week ceasefire indefinitely, contingent upon a 'unified proposal' from Iran. Despite the extension, the U.S. naval blockade remains in effect. Iran has dismissed the move as 'meaningless,' maintaining that the Strait of Hormuz will remain closed until the blockade on Iranian ports is lifted, a situation Iranian leaders have characterized as an act of war. Simultaneously, the Office for National Statistics reported that UK consumer price inflation accelerated to 3.3% year-on-year in March, up from 3% in February. The increase was primarily attributed to rising transport costs and aligned with market expectations. Corporate results provided a fragmented backdrop for the session. Bunzl shares rose over 3% after the company maintained its 2026 outlook following in-line Q1 trading. Tesco also moved higher following the announcement of a new phase of its share buyback program. Conversely, Reckitt Benckiser plummeted 4.7% after reporting a year-on-year decline in group net revenue for the first quarter of 2026. Other notable declines included Melrose Industries, down 4.5%, Rolls-Royce Holdings, which dropped 2.9%, and JD Sports Fashion, which fell 2.8%.