Investing.com — British stocks closed marginally lower on Thursday after Iran’s Islamic Revolutionary Guard Corps (IRGC) warned it would deploy “more precise, more destructive” weapons should fighting with the United States reignite, adding fresh military-rhetoric risk to an already tense standoff over the Strait of Hormuz.
The was almost flat, declining 0.03%. Germany’s fell 0.31%, while France’s dropped 0.57%. GBP/USD extended gains, up 0.19% at 1.3632.
Miners initially bore the brunt of the selloff, with closing down 1.2%, but (+0.1%) and (+1.9%) managed to close higher as gold gained, while led FTSE 100 fallers, down 14.3%.
’s supply squeeze has eased as LME inventories rose and the cash-to-three-month backwardation narrowed, ING said, suggesting the declines reflected broader risk-off sentiment over tensions around the Strait of Hormuz rather than a deterioration in metals fundamentals.
IRGC spokesman Brig. Gen. Hossein Mohebi told state broadcaster IRIB that Iran had continued upgrading its missile systems, including warheads, accuracy and range, throughout the earlier conflict, without giving specifics.
The IRGC also warned Saudi Arabia “will certainly be unable to contain” Yemen’s Houthis, who have stepped up attacks on the kingdom.
Axios, citing two unnamed U.S. officials, reported Washington has quietly run a shipping corridor through Hormuz for several weeks, moving roughly 10 million barrels a day, about half pre-conflict volume, via nightly convoys along the Omani coast, backed by U.S. air cover after a two-week campaign degrading Iranian radar.
Separately, Iranian Foreign Minister Abbas Araghchi told Mauritania’s FM that Islamic states should deepen cooperation via the OIC to “counter the Zionist regime’s plots,” Iran’s Mehr News Agency reported.
U.S. President Donald Trump, addressing reporters on Wednesday, said he was unhappy South Korea declined to help secure Hormuz despite sourcing “60%” of its oil there, and separately confirmed he expects to meet Kim Jong Un this year, saying Kim “likes me” unlike his predecessors.
Trump escalated pressure on Tehran late Wednesday, announcing what he called the “most crushing economic operation ever taken against any country” and warning countries aiding Iran’s financial institutions, banks, airports or shipping registries would face “tremendous economic consequences.” he dubbed the campaign “economic d-day.”
Araghchi hit back on social media platform X, calling the announcement a diversion from U.S. economic problems, including “unprecedented debt & surging interest costs”, and accusing Washington of “economic terrorism” that threatened the global economy and sovereignty.
Risk sentiment was also underpinned by a U.S. Treasury announcement to at least double its buyback operations at the long end of the curve, to a minimum of $4 billion per operation in the 10-20-year and 20-30-year sectors, from $2 billion previously, according to Jefferies strategist Mohit Kumar.
“We view yesterday’s announcement as a signal that Bessent is conscious of the long end yields and is ready to take steps to control the long end,” Kumar said in a note, adding that the move helped push 6 basis points lower and lifted gold and crypto on a weaker dollar.
Kumar said Jefferies remained “long gold” and continued “to see value over the medium term,” while flagging that Wednesday’s FOMC minutes were “less hawkish than feared,” with most members seeing inflation moderating through the rest of the year.
Oil firmed, with up 2.4% at $93.83 a barrel and up 2.8% at $86.82. traded lower, with December futures down 0.40% at $4,527.11, while fell 1.1% to $4,472.65 an ounce.
UK round up
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