Bond.az -- British stocks edged lower on Thursday as conflicting signals from U.S.-Iran negotiations and a lukewarm reception to Nvidia's earnings kept sentiment cautious, even as oil prices partially recovered.
The FTSE 100 slipped 0.40%, Germany's DAX fell 0.31% and France's CAC 40 was down 0.23%. Sterling inched lower 0.12% to 1.3419 as of 03:20 ET.
Oil clawed back some of Wednesday's 5% plunge after Trump warned the U.S. remained ready to strike Iran if talks collapsed, saying the situation was "right on the borderline."
Brent closed lower at $105.02 on Wednesday after Trump said Washington was in the "final stages" of a deal, before his tone hardened overnight.
Tehran pushed back with parliament speaker Mohammad Bagher Qalibaf warning Iran must strengthen its "readiness for a decisive and effective response." Pakistan's army chief traveled to Tehran for mediation.
The Strait of Hormuz remained largely shut. Iran's newly-created Persian Gulf Strait Authority published a map of its claimed controlled zone, requiring vessels to seek authorization.
U.S. Central Command said it had redirected 91 ships. The UN's FAO warned the closure risks triggering a severe global food crisis, with Hormuz accounting for a fifth of global oil shipping and a third of fertilizer supply.
Trump said Netanyahu would do "whatever I want him to do" on Iran. Israel's army chief said the IDF was at its highest alert.
Smiths Group cut its 2026 revenue guidance after a £10 million hit from the Middle East conflict. Close Brothers raised motor finance provision by £30 million. Tate & Lyle flagged disappointing performance. Ibstock flagged cost inflation. AJ Bell announced a share buyback.
