US Strikes Iranian Targets as FTSE 100 Declines

The FTSE 100 index declined Wednesday, closing down 13 points at 10,515. The downturn was driven by a combination of weak economic data from China and escalating military tensions in the Middle East. China's National Bureau of Statistics reported second-quarter GDP growth of 4.3%, the slowest pace in approximately three years, which triggered losses for mining stocks including Fresnillo, Antofagasta, and Endeavour Mining.

Simultaneously, the United States launched daylight strikes against Iranian military targets. United States Central Command targeted coastal defense systems on Greater Tunb Island and a military base in Bampur, where seven deaths were reported. In response, the Islamic Revolutionary Guard Corps threatened to close the Strait of Hormuz and halt all regional energy exports.

Market volatility persisted as Brent crude prices fluctuated, eventually softening toward $84 a barrel after Donald Trump retracted threats to impose a 20% toll on vessels transiting the Strait of Hormuz. Meanwhile, Federal Reserve Chair Kevin Warsh maintained a strict stance against persistently elevated inflation, despite a softer-than-expected U.S. inflation reading.