FTSE 100 snaps seven-day winning streak after US and Iran trade airstrikes

Thu, 28th May 2026 17:53

* PPHE Hotel surges on £921 mln takeover ⁠proposal from Fattal Hotel Group

* BT drops after report UK will oppose Sunil Bharti Mittal stake increase

* Energy and defence stocks outperform on fresh ‌Middle East strikes

* FTSE 100 down 0.8%; FTSE 250 down 0.3%

May 28 (Reuters) - Britain's FTSE 100 ⁠slipped on Thursday, snapping a seven-session winning streak, as ⁠renewed U.S.-Iran hostilities clouded prospects for reopening the Strait of Hormuz.

The blue-chip FTSE 100 index fell 0.75% to 10,425.96 points, while the midcap FTSE 250 dipped 0.26%, easing from a near three-month high.

* BT Group ‌was 3.5% lower, among the biggest FTSE 100 decliners, after a report said the British government will oppose any attempt by Indian billionaire Sunil Bharti Mittal to increase his stake in the telecoms group.

* Energy and defence stocks were among the few gainers after Iran and the U.S. traded air strikes, highlighting ‌the fragility of negotiations aimed at turning a tenuous early-April ceasefire into a lasting agreement to end the three-month-old war.

* ‌Wall Street stocks later climbed and oil prices pared gains, however, after Axios reported the United States and Iran have reached an outline agreement to extend their ceasefire pending the approval of President Donald Trump.

* Hopes of an eventual reopening of the ‌Strait of Hormuz, a vital gateway for global energy, along with easing bets on domestic interest rate hikes have buoyed the recent rally in UK stocks.

* PPHE Hotel ⁠Group ⁠soared 22% after the hospitality real estate firm said ‌it had received a £920.9 million ($1.24 billion) takeover proposal from Israel's Fattal Hotel Group.

* IQE fell 6% after the chipmaker reported a drop in full-year adjusted core profit.

* Ousted BP Chair ‌Albert Manifold acknowledged he may have "pushed hard" for change, but again denied any misconduct, days after he was dismissed from the role. BP shares were largely flat. (Reporting by Medha Singh in Bengaluru; Editing by Kirsten Donovan)