FTSE 100 slips as Trump vows Iran war end after US midterms

FTSE 100 slipped up to 0.4 per cent on Thursday morning, dragged down by an 11 per cent drop in Associated British Foods. The decline erased modest advances from London’s oil majors and consumer names such as JD Sports and Whitbread.

Why the market is jittery

The sell‑off comes as investors weigh two contrasting forces: a rally in Brent crude that breached the $100‑a‑barrel mark for the first time since July, and a surprising political comment from Donald Trump. The former‑president told reporters the conflict with Iran would end “immediately after the midterms”, hinting that Tehran would seek a cease‑fire once the US election is settled.

“They’re desperate to try and affect the election so that we can get a nice weak group of people in there and leave them alone and let them have their nuclear weapon.”

Higher oil prices have reignited fears that both the Bank of England and the Federal Reserve may feel compelled to raise interest rates sooner than expected.

What could happen next

If the US midterms produce a clear outcome, Trump’s promise could translate into diplomatic moves in Tehran and Washington, potentially easing oil market pressure. However, analysts warn that the market’s defensive tilt has already eroded; the FTSE is back to February levels, and any further volatility could see more defensive stocks under pressure.

Market participants will also keep an eye on upcoming UK budget discussions, where Chancellor John Healey is expected to outline fiscal policy that could influence corporate earnings and consumer spending.

In the short term, the FTSE is likely to remain range‑bound as traders digest the mixed signals from oil prices, geopolitical headlines, and pending economic data.