FTSE 100 Live: Stocks to slip; US hits back at ‘surprise’ Iran attacks to end pause in conflict

Welcome back to the City PM FTSE 100 liveblog.

It’s Wednesday and the UK’s blue-chip index is set to fall after the US retaliated against ‘surprise’ Iran strikes overnight.

The US launched joint strikes with Saudi Arabia against Tehran-backed militias in Iraq after Washington claimed its forces in the Middle East were targeted by “an attempted surprise attack” by Iran.

The FTSE 100 had been making gains earlier in the week, as oil prices fell during a pause in fighting between the US and Iran. The blue-chip index closed on a 0.8 per cent gain on Tuesday.

Brent crude, the international benchmark, fell by 4.8 per cent to $84.09 per barrel, compounding earlier gains on Monday to reach a two-week low.

Over in the US, the Nasdaq fell as the rout on tech stocks continued. Sell-offs of chip stocks had rocked South Korea’s Kospi and Japan’s Nikkei earlier in the day.

Danni Hewson, head of financial analysis at AJ Bell, said on Tuesday: “London’s FTSE has often felt left behind by its lack of big tech constituents but today was one of those days when being out of the loop proved an advantage. From upside surprises at Unilever and Coats Group, to solid sales growth from SSP, today has set a positive tone for UK plc.”

Wednesday is another busy day for trading updates, with Rathbones, Greggs, Standard Chartered and Reckitt among the listed firms poised to update shareholders.

We’ll be bringing you the latest market updates and analysis as the day develops.

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