FTSE 100 slips as JD Sports profit warning and Trump’s Iran threat hit markets

FTSE 100 slid to a weekly low on Thursday, slipping to 10,693 at midday, a 0.46 per cent decline from Wednesday’s close and a 0.7 per cent drop for the week. The move was led by a near‑15 per cent plunge in JD Sports after the retailer warned that a slowdown in US sales would dent its profit forecast.

Why the dip matters

Investors are watching the retailer’s warning closely because JD Sports accounts for a sizable share of the index and its performance often signals broader consumer sentiment. At the same time, oil prices jumped more than two per cent to breach $94 a barrel, fuelled by geopolitical tension after President Trump threatened what he called the “most crushing economic operation ever taken against any country” on Iran.

Higher oil prices tend to lift energy stocks but can also increase input costs for manufacturers and retailers, adding another layer of uncertainty for the UK market.

Geopolitical backdrop

In a lengthy post on Truth Social, President Trump accused Tehran of failing to honour a deal and warned that any nation providing “any type of lifeline” to Iran would face “tremendous economic consequences”.

“These maniacs are on the ropes,” he said, describing his planned measures as historic and capable of crippling the regime.

The UAE has already halted financial and economic transactions with Iran after accusing it of missile launches, and the 60‑day cease‑fire that ended on Monday has not been renewed.

What’s next for the market

Analysts expect the index to remain volatile as traders weigh the impact of JD Sports’ lower guidance against the potential for further oil price swings. The International Energy Agency reported a modest rise in crude inventories but a decline in distillate stocks, suggesting that supply dynamics could keep pressure on prices.

If sanctions intensify, oil‑related equities may rally while consumer‑focused stocks could feel the strain of higher costs. Investors will be watching upcoming earnings reports and any diplomatic developments for clues on whether the market can stabilise.

For a broader view of how fund flows are shaping UK equities, see our analysis of tracker funds reaching the 50‑fund milestone.