The FTSE 100 extended its slide on Wednesday, down 0.54%, as traders weighed renewed U.S.-Iran talks in Doha against a softer UK manufacturing reading. A cooling PMI and renewed negotiating signals from Washington set the mood, while Brent crude fell back toward pre-conflict levels.
British stocks deepened their losses on Wednesday, with the FTSE 100 down 0.54% as of 08:43 ET, as investors tracked resumed U.S.-Iran diplomacy alongside a weaker-than-expected read on UK factory activity. Sterling held steady at 1.3237, down 0.19%.
Iran talks resume in Doha
Iran and the U.S. restarted indirect talks in Doha, with Qatar and Pakistan mediating; a source told Reuters that Witkoff and Kushner met Qatar's prime minister but are not attending the technical session. Vice-President JD Vance said the U.S. has "accomplished the core mission" of ensuring Iran never gets a nuclear weapon, adding on Fox News that Washington holds the upper hand in the negotiation whatever the outcome.
Tensions in the region stayed in view. Iran's chief negotiator Mohammad Bagher Ghalibaf said Tehran has exported "more than 40 million barrels" of oil since a U.S. blockade was lifted, and called the Strait of Hormuz "Tehran's greatest instrument of power." A foreign-flagged cargo ship ran aground in the Strait after deviating from Tehran's designated corridor, Iranian state broadcaster IRIB said.
Manufacturing cools, oil retreats
UK manufacturing output grew at its fastest pace since September 2024 in June, yet the broader PMI eased to 52.5 from May's four-year high of 53.9, undershooting the 53.1 flash estimate, S&P Global said. New work inflows grew at their weakest pace since December 2025.
BoE Governor Andrew Bailey told CNBC it will "take longer" to return to the 2% target, calling the delay "hugely frustrating." Meanwhile Brent crude fell to $71.92 a barrel, down 1.4%, and WTI slipped 0.96% to $68.83, reversing earlier gains.
Elsewhere in Europe, the DAX was little changed, up 0.08%, while the CAC 40 fell 0.91%.
Source: Investing.com
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