FTSE 100 slides as Middle East tensions flare

London’s FTSE 100 slipped about 0.6%, reaching its lowest level in nearly a month as investors reacted to renewed Middle East volatility. Iran reportedly shot down a US helicopter over the Strait of Hormuz, prompting a retaliatory promise from President Donald Trump and heightening fears of further escalation. The sell‑off was led by technology and AI‑related stocks, while supermarkets and consumer staples such as Tesco posted gains.

A separate report noted the index later closed up 0.3% at 10,254.81, buoyed by a modest rally despite a profit warning at WH Smith. The market was further influenced by US consumer inflation hitting a three‑year high, rising oil prices, and diplomatic moves by Qatari negotiators attempting to bridge gaps between the US and Iran.