Late market roundup: FTSE 100 ends red, US eyes longer Hormuz blockade

Stocks closed mostly lower on Wednesday, while the price of oil soared amid reports that the US is eyeing a months-long blockade of the Strait of Hormuz, and ahead of an anticipated rate hold by the Federal Reserve.

The FTSE 100 closed down 119.68 points, 1.2%, at 10,213.11. The FTSE 250 ended down 198.55 points, 0.9%, at 22,200.87, but the AIM All-Share rose 1.53 points, 0.2%, at 788.43.

The Cboe UK 100 ended down 1.2% at 1,017.02, the Cboe UK 250 was 1.0% lower at 19,290.20, and the Cboe Small Companies Index ended down slightly at 17,975.62.

A White House official said US President Donald Trump was eyeing an Iran blockade lasting months if needed as the crisis in the Middle East showed no signs of easing, AFP reported on Wednesday.

AFP said oil executives were told, in a meeting with Trump held on Tuesday, that the US could extend its naval blockade of Iran for months more, citing a White House official.

US press reports have suggested Trump has already decided to reject Iran’s latest proposed deal to reopen the Strait of Hormuz.

According to the Wall Street Journal, Trump intends to pursue the blockade of Iranian ports until Tehran is forced to dismantle its nuclear programme.

The latest Iranian proposal, passed along by Pakistan, laid out red lines including on nuclear issues and Hormuz, according to Iran’s Fars news agency.

The plan would reportedly see Tehran ease its chokehold on the strait and Washington lift its retaliatory blockade while broader negotiations continue, including over the nuclear programme.

Brent oil traded at $117.20 a barrel on Wednesday afternoon, sharply higher compared to $111.77 at the time of the equities close in London on Tuesday.

Joshua Mahony at Scope Markets said: ‘The perception that Iran will come to the table as the blockade threatens to shut-in and damage their energy infrastructure means the world finds itself stuck in a game of chicken to see who blinks first.’

In European equities on Wednesday, the CAC 40 in Paris ended down 0.4%, and DAX 40 in Frankfurt fell 0.3%.

In New York, markets were lower. The Dow Jones Industrial Average was down 0.6%, the S&P 500 was 0.1% lower, and the Nasdaq Composite was down slightly.

The yield on the US 10-year Treasury stretched to 4.39% on Wednesday, from 4.36% on Tuesday. The yield on the US 30-year Treasury stretched to 4.98% from 4.96%.

The US Federal Reserve is widely expected to leave interest rates unchanged later on Wednesday, at what could be Chair Jerome Powell’s last meeting. His term expires on May 15, and on Wednesday the US Senate panel voted to advance the nomination of Kevin Warsh, Trump’s pick to succeed him.

‘Markets are not expecting any change in interest rates tonight but will be paying close attention to the Fed’s statement, and how it may differ from the previous update, as well as Jerome Powell’s final press conference as Chair. The key issue here is hearing the Fed’s view on the war, as it relates to high oil prices, and thereby their outlook for inflation for the rest of the year,’ commented David Morrison at Trade Nation.

Elsewhere, attention will focus on earnings as four of the Magnificent 7, Microsoft, Meta Platforms, Alphabet and Amazon, deliver reports for the March quarter. Between them, the four represent around 15% of the S&P 500 market value.

The pound eased to $1.3491 on Wednesday afternoon from $1.3505 on Tuesday. Against the euro, sterling ebbed to €1.1530 from €1.1534.

The euro traded lower against the greenback, falling to $1.1695 on Wednesday from $1.1709 on Tuesday. Against the yen, the dollar was trading at JP¥160.24, higher against JP¥159.61.

In London, GSK fell 6.3% and AstraZeneca dipped 1.5%, despite solid looking first quarter results and retained guidance.

Dan Coatsworth, head of markets at AJ Bell said: ‘It might be that full-year earnings guidance was only reiterated rather than upgraded in both cases, leaving investors feeling short-changed against a solid start to the year.’

Housebuilders were on the back foot, as the latest oil price rise raised fears that interest rates may have to be increased to tackle likely inflationary pressures.

Persimmon fell 4.4%, Berkeley Group 3.6% and Barratt Redrow 3.0%. Kitchen supplier Howden Joinery was down 3.8%, while retailer Next fell 3.0% on fears of a knock-on effect to retail sales.

DCC led the risers, climbing 9.3%, as it said it is evaluating a bid approach from US investment firms Energy Capital Partners and Kohlberg Kravis Roberts.

The Dublin-based provider of sales, marketing and distribution services to the energy sector was responding to speculation relating to a possible offer for the firm.

The FTSE 100 firm confirmed it has on Wednesday received an indicative cash proposal from New Jersey-based Energy Capital Partners and New York-based KKR and is ‘evaluating’ the approach together with its advisers.

On the FTSE 250, Ceres Power surged 25% as Goldman Sachs raised its share price target to 670p from 530p and reiterated a ’buy’ rating.

Goldman upgraded manufacturing capacity assumptions for Ceres Power following faster?than?expected solid oxide fuel cell ramp?up signals from strategic partner Weichai, and improving medium?term royalty visibility.

Gold traded down at $4,551.30 an ounce on Wednesday, from $4,579.32 on Tuesday.

The biggest risers on the FTSE 100 were DCC, up 500.00p at 5,880.00p, Intertek, up 171.00p at 4,766.00p, Mondi, up 19.20p at 756.00p, Rightmove, up 5.10p at 439.30p and Barclays, up 4.45p at 431.00p.

The biggest fallers on the FTSE 100 were St James’s Place, down 75.00p at 1,177.50p, GSK, down 110.00p at 1,918.00p, Persimmon, down 47.00p at 1,027.00p, Fresnillo, down 128.00p at 3,112.00p and Howden Joinery, down 30.50p at 768.50p.

Thursday’s global economic calendar has interest rate decisions in Europe and the UK, eurozone, US and Canada GDP data, eurozone inflation figures and quarterly personal consumption expenditures numbers in the US.

Wednesday’s local corporate calendar has first-quarter results from gold miner Endeavour Mining, Asia-focused lender Standard Chartered and consumer goods firm Unilever, plus full-year results from Premier Inn owner Whitbread.

Copyright 2026 Alliance News Ltd. All Rights Reserved.