08.07.202608:05:26UTC+00FTSE 100 Falls on Wednesday

The FTSE 100 fell more than 0.5% on Wednesday as rising tensions in the Middle East and higher oil prices reignited concerns about stubborn inflation. A new wave of US military strikes in Iran cast doubt on the durability of a recent peace agreement, prompting a selloff in UK defence stocks including Babcock, BAE Systems, and Rolls-Royce. Major pharmaceutical and consumer staples names such as AstraZeneca, GSK, Unilever, and British American Tobacco lost around 1% or less, while mining companies declined in line with softer base metals prices. In contrast, oil majors BP and Shell gained 1.6% and 0.6% respectively, supported by the jump in crude prices. In the mid-cap space, FTSE 250 housebuilder Vistry tumbled 11% after an operational update, an ongoing chief executive review, and the announced departure of its chief financial officer, even as it reaffirmed guidance that full-year adjusted pretax profits will be in line with current market expectations.