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Stock prices were lower on Friday midday in London as the price of oil rose amid uncertainty regarding US-Iran negotiations, and as UK Prime Minister Keir Starmer’s leadership is likely to be challenged by Andy Burnham, who became a Member of Parliament. The FTSE 100 index was down 25.07 points, 0.3%, at 10,372.54. The FTSE 250 was down 163.98 points, 0.7%, at 23,166.74, and the AIM all-share was down 3.52 points, 0.4%, at 796.52. The Cboe UK 100 was down 0.2% at 1,029.45, the Cboe UK 250 was down 0.8% at 19,821.98, and the Cboe small companies was up 0.1% at 18,426.35. In European equities on Friday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.3%. The pound was quoted at $1.3225 midday Friday, lower than $1.3246 at the London equities close on Thursday. Against the euro, sterling fell to €1.1538 from €1.1541 a day prior. The euro traded at $1.1455 midday Friday, lower than $1.1477 late Thursday. Against the yen, the dollar was quoted at JP¥161.30, up from JP¥160.99. On the geopolitical front, Iran’s chief negotiator Mohammad Bagher Ghalibaf said future talks with the US would remain bound by Tehran’s ‘red lines’, highlighting lingering tensions despite this week’s agreement to end the regional conflict. ‘As we have shown in the past path of negotiations, we are steadfast in fulfilling the conditions and red lines set, and in achieving the interests of the Iranian nation,’ Ghalibaf said in remarks published by state news agency IRNA. He warned that Iran remained ready to respond forcefully to any perceived provocation, saying: ‘If the enemy seeks to be excessive, we have proven that our fingers are on the trigger and we have no hesitation in giving a crushing response to the enemy.’ Tehran and Washington signed a memorandum of understanding this week aimed at ending the war that erupted on February 28 following US-Israeli strikes on Iran. Oil prices moved higher amid the renewed rhetoric. Brent crude traded at $80.00 a barrel at midday in London, up from $77.04 late Thursday. Meanwhile, the Wall Street Journal reported that the US Defense Department plans to seek congressional approval for around $80 billion in additional funding to cover costs associated with the Iran conflict and other expenditures. The report said Deputy Defense Secretary Stephen Feinberg had discussed the request with lawmakers this week. President Donald Trump has faced criticism from some voters over the cost of the conflict amid concerns about inflation and energy prices. US financial markets are closed on Friday for the Juneteenth holiday. Back in the UK, political developments also remained in focus after Prime Minister Keir Starmer insisted he would contest any future Labour leadership challenge following Andy Burnham’s victory in the Makerfield by-election. Burnham’s return to Westminster has fuelled speculation over Labour’s future direction after he increased the party’s vote share in a constituency where Reform UK had made significant gains in recent local elections. However, Starmer said he would not ‘walk away’ from Downing Street if a leadership contest were triggered, setting up the prospect of a future internal party battle. In his victory speech, Burnham said Labour had a ‘final chance to change’. Among London blue chips, defence stocks continued to benefit from elevated geopolitical uncertainty across Europe. Babcock International led the FTSE 100, up 1.7%, while broader defence names across the continent also traded higher. At the other end of the index, Admiral Group fell 5.8% after RBC downgraded the insurer to ’sector perform’ from ’outperform’. On the FTSE 250, PPHE Hotel Group slumped 20%. The hotel operator said Fattal Hotels will not proceed with a takeover offer, ending a proposal that valued PPHE at £22 per share, or around £920.9 million. Fattal’s approach was blocked by opposition from Euro Plaza Holdings, which owns roughly 33% of PPHE. However, the company said it has received a separate indicative proposal from another interested party, which remains under review as part of the strategic process launched in November. Among smaller caps, Sunda Energy plunged 44%. The gas explorer said it had received notice from Timor-Leste’s upstream regulator of its intention to terminate the Chuditch production sharing contract after subsidiary SundaGas failed to drill the Chuditch-2 appraisal well by the June 18 deadline. LadBible owner LBG Media rose 4.5%. The social entertainment group agreed to acquire a 75% stake in Gen Z-focused social media agency Uncovered for an initial £26.8 million. The deal includes potential earnout payments of up to £7.0 million and options to acquire the remaining 25% through 2030. LBG said the acquisition will be immediately earnings enhancing and is expected to deliver double-digit earnings-per-share accretion in its first full year. Uncovered generated £10.2 million in revenue and £2.7 million in adjusted Ebitda in 2025 and is forecast to grow revenue by at least 50% in 2026. The company also secured a new HSBC debt facility worth up to £50 million to support the transaction and future acquisition opportunities. Elsewhere in Europe, German Chancellor Friedrich Merz called for a smaller long-term EU budget, arguing that current proposals remain too large. Speaking ahead of talks with fellow European leaders in Brussels, Merz said the proposed €1.76 trillion budget for 2028 to 2034 was ‘far too high’ and required further reductions. The debate comes as European governments face growing spending demands while remaining constrained by the fiscal pressures left by successive economic and geopolitical crises. Gold was quoted at $4,152.80 an ounce at midday Friday, down from $4,230.61 on Thursday. Still to come on Friday’s economic calendar is Canadian retail sales data. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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