London, May 7, 2026, 09:18 (BST)
The FTSE 100 was down 0.34% to 10,403.62 at 09:17 BST on Thursday, according to a MarketScreener estimate, after Shell, BP, and Centrica dragged the index lower. London’s heavyweight energy stocks lost ground, reversing some of the index’s previous gains that had followed optimism around a possible U.S.-Iran peace deal.
The significance here lies in Wednesday’s sudden rally, which came on the back of shifting geopolitical headlines—not stronger company numbers. The FTSE 100 jumped 2.2% to finish at 10,438.66, while the FTSE 250 advanced 1.7%. Reports of headway toward a Middle East peace deal sent oil tumbling and prompted a wave of risk-on trades.
Early London action painted a different picture. The FTSE 250, more exposed to the UK’s domestic scene, kicked off up 0.6%—evidence that some risk appetite lingered. But oil majors and utilities weighed on the FTSE 100, which lagged as Brent crude slipped beneath $100 a barrel.
Shell’s shares slid early despite a first-quarter profit that came in above forecasts. The company trimmed its buyback plan to $3 billion, down from the previous $3.5 billion, even as adjusted earnings jumped to $6.92 billion—beating the $6.36 billion analyst consensus. Oil prices drifting lower weighed on the stock. BP was also trading in the red.
Centrica shares weighed on the index. The British Gas parent flagged that retail EBITDA—its operating profit before interest, tax, depreciation and amortisation—would likely come in at the lower end of its £500 million to £800 million target, blaming mild weather, the current commodity price curve, and issues collecting bad debts. The company also disclosed a roughly £370 million purchase of the Severn gas-fired power station.
Markets may be getting ahead of themselves, betting on peace before the politics are actually there. According to Swissquote’s Ipek Ozkardeskaya, traders shifted from optimism straight into “euphoria” on the back of peace proposal headlines. Still, she’s not celebrating yet—she’ll “clap when Iran confirms.” Just one headline, she noted, could flip the whole picture. MarketScreener
Some sectors caught a break from oil’s drop. Travel stocks found support — International Consolidated Airlines Group and easyJet both pushed higher, with investors eyeing cheaper fuel and signs of easing Gulf tensions. InterContinental Hotels Group climbed too, after the Holiday Inn parent surprised with stronger-than-forecast first-quarter revenue per available room, a key hotel metric.
IHG reported a 4.4% jump in global revenue per available room for the first quarter, topping the 3.3% analysts had penciled in. CEO Elie Maalouf highlighted a pickup in Greater China and noted that while the Middle East faced headwinds, demand in other regions is more than making up for it. The group stays upbeat about its full-year outlook.
Shares in Hiscox topped the FTSE 100 after the insurer posted a 10.2% jump in first-quarter insurance contract written premiums, thanks largely to momentum in its retail business. Peel Hunt’s Andreas van Embden described the results as a “good start to the year” and pointed to tight underwriting and tame claims experience. Reuters
Shares in JD Sports climbed, though the company struck a cautious tone on profits. The retailer projected £750 million to £850 million in pre-tax profit and adjusting items for 2026/27, coming in under the £852 million it reported for the year ended Jan. 31. JD also flagged the Iran war as a source of added uncertainty, despite having no direct operations in the Middle East.
European stocks didn’t move much early on. According to Reuters, the STOXX 600 hovered near flat at 623.56 as of 0703 GMT. The DAX in Germany was unchanged; London’s FTSE 100 slipped 0.2%. Investors sifted through earnings and kept a close eye on Tehran’s reaction to the latest U.S. proposal.
The spotlight now shifts to whether lower energy prices keep bolstering UK consumers, travel firms, and hotels, without eating too much into profits at Shell, BP, and other commodity giants. London hasn’t unwound all of Wednesday’s gains yet. The market wants evidence.
