London pre-open: Stocks to drop as US and Iran exchange strikes

(Sharecast News) - London stocks were set to drop at the open on Thursday following fresh strikes between the US and Iran.

The FTSE 100 was called to open around 0.9% lower. At 0720 BST, Brent crude was up 2.7% at $96.85 a barrel after the US ​military carried out new strikes overnight in Iran targeting ‌a military site and shooting down four Iranian one-way attack drones that posed a threat around the Strait of Hormuz.

According Reuters, which cited a US official, the military site ⁠that was struck was an Iranian ground control station ​in Iran's Bandar Abbas that was about to launch a ​fifth drone.

Danske Bank said: "Iran's Revolutionary Guard has overnight struck a US military base in retaliation after the US carried out its second attack this week on Iranian military targets. Iran has warned that any further US strikes will trigger a larger response, putting the April ceasefire and peace talks under extensive pressure.

"The attacks come after Iranian state television reported details of a potential peace proposal on Wednesday. Under the proposed terms, the US would end a naval blockade of Iranian shipping ports while Iran would restore traffic through the Strait of Hormuz to pre-war levels within a month. The White House denied the report, calling it a 'complete fabrication', while Iran's government has not commented."

Meanwhile, Donald Trump said he wouldn't be rushed into a peace deal with Iran. At a White House cabinet meeting on Wednesday, the US President said he wasn't concerned about the potential political impact of the conflict with Iran.

"They thought they were going to outwait me," Trump said, referring to Iran's leadership. "You know, 'We'll outwait ​him. He's got the midterms.' I don't care about the midterms."

In corporate news, utilities provider SSE reported a small decline in annual profits but adjusted earnings at the upper end of guidance, delivering an upbeat outlook following a record year for capital investment.

The firm said it made a strong operational performance during the 12 months to 31 March, while a "resilient business mix" means it has seen no immediate impact from current macroeconomic volatility, as it held on to near and medium-term profit growth targets for FY27 and FY30.

Metal flow engineering firm Vesuvius said trading over the first four months of the year was slightly ahead of 2025 on a constant currency basis, leading the group to maintain its full‑year guidance as it expects to report a stronger second-half performance.

Vesuvius said steel production outside China, Ukraine, Russia and Iran rose 2.5% in the first quarter, with improving momentum in India, South East Asia and North America. Output in Europe, the Middle East and South America remained below prior‑year levels, though Vesuvius expects conditions in Europe to improve as new protective measures take effect later in the year.

The company also updated its FX‑translation guidance, noting that re‑translated FY25 revenue would have been £1.80bn versus £1.81bn reported, with trading profit at £146.9m versus £151.1m.

Computacenter said it has bought Government Acquisitions (GAI), a value-added reseller focused on the US federal government market, for up to $92m.

Headquartered in Cincinnati, Ohio, GAI is an IT solutions partner for federal agencies and employs approximately 90 people. In 2025, it reported gross invoiced income of around $390m and adjusted EBITDA of approximately $8m.

Computacenter chief executive Mike Norris said: "We are proud of the relationships we have built with public sector customers across Europe and Canada and are delighted to have the opportunity to bring one of the leading US federal government VARs into Computacenter.

"GAI provides us with access to a new market for growth in the United States, diversifies our business and leverages our growing capabilities and infrastructure."