Today in the UK stock market: Iran negotiations stall, markets worry about escalating tensions, stock prices decline

Investing.com - On Tuesday, the UK stock market declined. Previously, market optimism about US-Iran peace negotiations gradually faded, negotiations once again stalled, and US President Trump is also considering resuming military actions against Iran, leading investors to become cautious.

At 3:11 a.m. Eastern Time (15:11 Beijing Time), the UK blue-chip index fell 1.13%, the German DAX index dropped 1.2%, and the French CAC 40 index declined 1%. The British pound weakened, with GBP/USD falling 0.52% to 1.3540.

On Monday, Trump told reporters in the Oval Office that the ceasefire agreement was “hanging by a thread,” and dismissed Iran’s latest negotiation response as “a bunch of garbage.”

“That’s incredibly weak,” he told reporters. “I can say, for now, this is one of the weakest responses, and it’s hanging by a thread.”

In an interview with Fox News, Trump also said he is considering restarting the “Freedom Project”—a military operation to escort ships through the Strait of Hormuz amid Iran’s blockade. The operation was halted after about a day last week. He warned that if restarted, it would be just a “part” of a larger-scale military action.

According to a U.S. official who spoke to the Jerusalem Post, Trump convened a high-level security meeting in the White House Situation Room on Monday to discuss the next steps in responding to Iran.

Channel 12 in Israel cited two senior U.S. officials saying that Trump is considering re-engaging in strikes against Iran to increase pressure on Tehran, with one official stating: “Trump will give them a little lesson.”

Iranian Parliament Speaker Mohammad Bagher Ghalibaf posted on X (formerly Twitter), using strong language, saying Tehran is “prepared for all options,” and that Washington has “no choice but to accept the rights of the Iranian people,” as outlined in Iran’s 14-point plan.

UK Market Dynamics

On the Beach (a UK online travel platform) reissued its full-year adjusted pre-tax profit forecast, in the range of £18 million to £25 million, well below analysts’ expectations of £38.5 million to £42 million. The conflict in Iran has led to a sharp decline in bookings to nearby destinations such as Turkey, Cyprus, and Egypt, which is a major factor pressuring performance.

Marston’s announced a 7.9% increase in first-half basic pre-tax profit, driven by cost control and efficiency improvements, with the full-year outlook unchanged.

Picton Property stated that LondonMetric and Schroder Real Estate Investment Trust have reached non-binding terms for a £403 million all-stock takeover offer.

Wizz Air expects its FY2026 performance to break even or turn slightly profitable, warning that ongoing Middle East conflicts continue to pose challenges to the operating environment.

Greggs reported a 3.3% growth in same-store sales over the latest 10 weeks, driven by new menu products, with the full-year outlook unchanged.

Imperial Brands warned that ongoing conflicts in Iran could impact raw material costs and consumer demand, but reiterated its full-year outlook. Adjusted operating profit for the first half was £1.64 billion, slightly below market expectations.

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