London close: FTSE 100 tumbles 1.7% as US-Iran diplomacy falls apart

8th Jul 2026 17:15

(Sharecast News) - UK stock markets dropped sharply on Wednesday as oil prices soared to a three-week high after the dismantling of a ceasefire between the US and Iran.

Oil stocks posted decent gains, along with a handful of defensive names, but shares in the heavyweight mining sectors suffered a broad sell-off as risk appetite was scaled back and metals prices sank.

The FTSE 100 finished 1.7% lower at 10,489.04, with just nine blue-chip constituents finishing in positive territory.

Hammering sentiment was Donald Trump's announcement that the ceasefire with Iran was over following an exchange of strikes overnight. Speaking to reporters at the Nato summit in Turkey, Trump said: "I don't want to deal with them anymore."

The president said he would let negotiators continue to talk with Tehran but insisted it was "a waste of time" dealing with the Iranians, accusing them of being liars.

The US had launched "a series of powerful" strikes against Iran on Tuesday after three oil tankers were attacked in the Strait of Hormuz, with the US also revoking a waiver that allowed Iran to sell oil.

Brent crude soared 8.2% to $80.27 a barrel by the close in London. It has now closed above the $80 mark since 19 June.

"Investors wanted the war to be 'over', not the peace deal. The news has caught the market off guard, leading to share prices flashing red and oil price hikes restoking the inflation debate," says Dan Coatsworth, head of markets at AJ Bell.

"Interest rate expectations quickly shifted, with markets now thinking the Fed could raise rates in September or October rather than the earlier suggestion of December.

In other news, the IMF said it now expects global growth of 3% this year, down from a forecast of 3.1% in April. It's also below the average of 3.5% seen in 2024-25. However, the forecast for UK growth was lifted to 1.0% from 0.8% for 2026.

Mining stocks drop

Mining stocks were sharply lower as metals prices slumped, with gold and copper both down nearly 3%, platinum sinking 4.5% and silver dropping 5.9%. Antofagasta, Anglo American, Fresnillo and Rio Tinto were the FTSE 100's worst performers, while Hochschild, Pan African Resources and Endeavour Mining tanked on the FTSE 250.

On the upside, BP and Shell jumped as oil prices surged. Meanwhile, stocks in the defensive sectors, such as utilities names Centrica and DCC, and retailers Tesco and Sainsbury, were viewed as safe havens amid wider market volatility.

Vistry tumbled as the housebuilder warned it will post a first-half loss and announced the resignation of its chief financial officer. Builders merchant Travis Perkins and housebuilder Persimmon also dropped on the sentiment.

Market Movers

FTSE 100 (UKX) 10,489.04 -1.66%

FTSE 250 (MCX) 23,017.64 -1.54%

techMARK (TASX) 5,877.52 -1.91%

FTSE 100 - Risers

BP (BP.) 491.30p 3.32%

Shell (SHEL) 3,079.50p 2.27%

Centrica (CNA) 171.50p 1.18%

Admiral Group (ADM) 3,650.00p 1.00%

AstraZeneca (AZN) 14,240.00p 0.99%

Pershing Square Holdings Ltd NPV (PSH) 3,796.00p 0.69%

Tesco (TSCO) 472.20p 0.47%

Sainsbury (J) (SBRY) 338.50p 0.39%

DCC (CDI) (DCC) 6,200.00p 0.08%

FTSE 100 - Fallers

Antofagasta (ANTO) 3,527.00p -6.40%

Anglo American (AAL) 3,381.00p -6.34%

Fresnillo (FRES) 2,570.00p -5.62%

Rio Tinto (RIO) 6,490.00p -4.91%

International Consolidated Airlines Group SA (CDI) (IAG) 454.90p -4.75%

Persimmon (PSN) 998.60p -4.44%

Halma (HLMA) 3,576.00p -4.39%

Burberry Group (BRBY) 1,057.00p -4.34%

Standard Chartered (STAN) 2,036.00p -4.23%

Smiths Group (SMIN) 2,419.00p -4.01%

FTSE 250 - Risers

Gamma Communications (GAMA) 886.00p 6.81%

RIT Capital Partners (RCP) 2,400.00p 5.49%

Keller Group (KLR) 3,426.00p 4.96%

Herald Investment Trust (HRI) 3,110.00p 4.89%

Harbour Energy (HBR) 223.60p 3.71%

Diversified Energy Company (DI) (DEC) 1,052.00p 2.94%

Ithaca Energy (ITH) 229.40p 2.69%

RTW Biotech Opportunities Ltd (RTW) 2.45p 2.51%

Vietnam Enterprise Investments (DI) (VEIL) 782.00p 2.22%

TP Icap Group (TCAP) 350.60p 1.80%

FTSE 250 - Fallers

Hochschild Mining (HOC) 437.40p -8.72%

Pan African Resources (PAF) 90.30p -8.51%

Ceres Power Holdings (CWR) 455.00p -7.48%

Vistry Group (VTY) 234.40p -7.13%

Endeavour Mining (EDV) 3,562.00p -7.07%

Trustpilot Group (TRST) 258.00p -6.25%

Raspberry PI Holdings (RPI) 811.50p -6.02%

Breedon Group (BREE) 292.00p -5.81%

Travis Perkins (TPK) 518.50p -5.47%

Bridgepoint Group (Reg S) (BPT) 276.80p -5.21%