FTSE 100 today: Stocks retreat as Gulf strikes send oil toward $100

British equities declined on Wednesday as intensifying U.S.-Iran hostilities in the Gulf pushed crude prices close to $100 per barrel and weighed on market sentiment.

As of 03:18 ET (07:18 GMT), the FTSE 100 was down 0.28%, Germany's DAX lost 0.52%, and France's CAC 40 slipped 0.70%. The pound strengthened 0.19% against the dollar to $1.3567.

Brent crude advanced 2.1% to $99.97 a barrel, while WTI rose 1.71% to $94.64. Gold futures gained 0.22% to $4,448.94, and spot gold climbed 1.14% to $4,404.93.

U.S. Central Command reported it had destroyed five Iranian crude carriers after Iran's Islamic Revolutionary Guard Corps (IRGC) twice fired ballistic missiles at a U.S. Navy warship.

The IRGC said its forces had targeted two U.S. vessels, eight oil tankers, and ten other "violating ships" in the Strait of Hormuz.

Central Command said the warship evaded both missile salvos and no U.S. personnel were injured. The IRGC also asserted it had struck the U.S. al-Azraq base in Jordan, targeting facilities for F-35, F-16, and F-15 jets. Jordan's military reported intercepting 18 of the 20 missiles fired toward its territory, with the remaining two landing harmlessly in open ground.

Reuters-sourced reporting indicated that Oman and Iran are expected to unveil a temporary shipping corridor through the Strait of Hormuz within days. CENTCOM separately released footage of an Iranian vessel sinking in the Gulf of Oman, while Hormuz traffic data showed only six commodity vessels transited on Tuesday, below the 10-day average of 12.

Jefferies' Mohit Kumar remarked that Middle East tensions continue to dominate markets, adding that a rise in Brent toward $100 could foster optimism that oil prices are reaching a pain point, making Trump more willing to reach a deal.

ING strategists said recent developments only reinforce the view that a restart in talks remains far off, and that the market is likely to continue pricing in a sizeable risk premium.

Aberdeen has appointed former Sampo CEO Torbjörn Magnusson as chair-designate and non-executive director. He will succeed Douglas Flint, who plans to step down at the annual general meeting in April. Magnusson previously led Sampo's strategic transformation and its £1.7 billion acquisition of Hastings Group.

Energean posted a 45% increase in first-half profit, supported by the recognition of deferred tax assets in Italy, and maintained its full-year production outlook after restarting its Israeli operations.