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Stock prices in London were mostly lower at midday on Thursday after new US strikes against Iran, with rhetoric between the nations becoming more hostile. The FTSE 100 index was down 107.88 points, 1.0%, at 10,397.13. The FTSE 250 was down 166.46 points, 0.7%, at 23,218.52, and the AIM all-share was down 4.17 points, 0.5%, at 809.42. The Cboe UK 100 was down 1.1% at 1,033.21, the Cboe UK 250 was 0.9% lower at 20,104.39, and the Cboe small companies was down 0.3% at 18,779.59. In European equities on Thursday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was 0.3% lower. Sterling was at $1.3391 at midday on Thursday, down from $1.3429 at the London equities close on Wednesday. Against the euro, sterling eased to €1.1532 from €1.1543. The euro was lower at $1.1608 from $1.1633. Against the yen, the dollar was marginally lower at JP¥159.42 versus JP¥159.46. ‘The optimism which has persisted for much of this week about the prospects for a deal between the US and Iran is being severely tested,’ said AJ Bell analyst Russ Mould. ‘A fresh exchange of strikes between the two countries is testing the fragile ceasefire and forcing a reassessment of the chances of a near-term agreement which can reopen the Strait of Hormuz and dial down the pressure the crisis is putting on the global economy.’ Iranian forces fired at four ships attempting to cross Hormuz, according to state broadcaster IRIB. Iran has blockaded the strait since the start of the war in late February. US forces struck a ground control station in the southern port area of Bandar Abbas, a US official said, prompting Iran to then target ‘the American air base that served as the source of the attack’, according to IRIB, citing the country’s Revolutionary Guards. The Guards did not provide details on the location of the base, though Kuwait, which hosts US troops, said its air defences were responding to an attack. Brent crude for July delivery was trading slightly lower at $96.44 a barrel at midday on Thursday from $96.61 on Wednesday. In response, shares in defence firms were higher. Babcock International rose 1.7%, while BAE Systems climbed 1.6%. Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index 0.2% lower, and the Nasdaq Composite to ease 0.5%. The yield on the US 10-year Treasury was quoted at 4.50% on Thursday, widened from 4.47% on Wednesday. The yield on the US 30-year Treasury grew to 5.03% from 5.00%. Back in London, several firms went ex-dividend on Thursday, meaning new shareholders do not qualify for the latest payout. Among those companies on the FTSE 100 index, Kingfisher fell 4.1%, Severn Trent lost 3.2%, Associated British Foods was 3.0% lower and National Grid retreated 2.8%. On the FTSE 250 index, Hilton Food lost 6.2%, Breedon was 4.6% lower and IntegraFin Holdings eased 3.0%. Vesuvius fell 3.9% as it went ex-dividend, while it also released a trading statement. The molten metal flow engineering and technology company said cost savings, acquisition synergies, price rises and the improving momentum expected across key markets should support an improved second half of 2026. It said revenue and trading profit over the first four months of the year were slightly ahead of last year on a constant currency basis, including the benefit of Molten Metal Systems, bought from Advanced Materials last year. Cost savings plans remain on track with at least £10 million to be delivered in 2026 and cumulatively at least £55 million by 2028. Vesuvius said the ‘on-going geopolitical uncertainty, driven by events in the Middle East’ had limited impact on end-markets and whilst the situation remains ‘volatile, we do not currently anticipate that our end markets will be materially impacted by these events during the remainder of 2026.’ Shares in PPHE Hotel jumped 23%, as Fattal Hotel confirmed it has proposed to buy the company. PPHE on Wednesday said that it had received an offer of £22 per share from Fattal that values PPHE at £930 million in total. PPHE on Wednesday said it believes Fattal’s offer represents ‘fair value’, and that it intends to engage with major shareholders to assess the proposal, though it stressed that no firm offer had been made. AJ Bell analyst Russ Mould said: ‘There are some regulatory hoops to jump through, and it is worth noting that, while the bid from Israel’s Fattal Hotel Group is at a significant premium to the undisturbed share price, it is still at a chunky discount to the estimated value of PPHE’s properties. ‘However, it seems likely that shareholders, and most significantly the founders Eli Papouchado and Boris Ivesha who hold 44% of the stock, will come to an agreement.’ Among small caps, Hamak Strategy climbed 10% as it reported ‘exceptional gold grades’ from testing at the Akoko gold project in southwest Ghana. ‘We are thrilled to see such exceptional gold grades and wide intersections from the processing of historical drilling data,’ said Chief Executive Officer Karl Smithson. On the AIM market, shares in MicroSalt were down 7.1%. The London-based provider of low-sodium salt products lowered its 2026 sales guidance to $4.5 million from previous guidance of $7.0 million in November. ‘This adjustment reflects the anticipated production timing associated with the 2027 launch schedule, rather than any change in the underlying demand outlook,’ MicroSalt noted. It reaffirmed its 2027 sales estimate of $15 million. For 2025, MicroSalt said its pretax loss narrowed to $3.5 million from $6.1 million a year prior. Revenue more than doubled to $2.1 million from $750,000. ‘MicroSalt’s strong progress is clearly demonstrated by the significant revenue growth achieved during 2025, momentum that we expect to accelerate further throughout 2026, 2027, and beyond,’ said Chief Executive Officer Rick Guiney. Gold was lower at $4,384.66 an ounce at midday on Thursday from $4,439.66 late Wednesday. Still to come on Thursday’s economic calendar are US GDP and personal consumption expenditures figures, alongside weekly jobless data. 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