UK's FTSE 100 falls more than 1% on Middle East uncertainty; 3i shares slide

Thu, 26th Mar 2026 17:15

March 26 (Reuters) - London's FTSE 100 equities ⁠index dropped more than 1% on Thursday, as lingering uncertainty over a Middle East ceasefire weighed on sentiment, while a steep fall in 3i Group ‌shares added further pressure. A senior Iranian official told Reuters the U.S. proposal was "one-sided and ⁠unfair", while U.S. President Donald Trump warned that Iranian ⁠negotiators "better get serious soon" or there would be "NO TURNING BACK." The blue-chip FTSE 100 closed down 1.3%, snapping a two-day winning streak, while the midcap FTSE 250 index fell 0.8%.

* 3i Group shares shed 17.6% to more than ‌a two-year low after the private equity firm said its discount retailer Action expects like-for-like sales growth between 4% and 5% in 2026, broadly similar to the 4.9% growth it recorded in 2025.

* Global stocks slipped on Thursday as the price of Brent crude pushed past $105 a barrel. That move followed the Iranian government's announcement that it ‌was ruling out talks with Washington, dampening expectations of a quick end to the nearly month-long U.S.-Israeli war with Iran.

* Around 90% ‌of the economists polled by Reuters now expect the Bank of England to hold its key interest rate at 3.75% through the end of this year, even as markets price in nearly two or three hikes after war-driven energy shocks forced a sharp reversal from ‌earlier this year, when investors were expecting rate cuts.

* Britain's economic growth prospects this year received the sharpest downgrade of any major economy in the OECD's interim forecast update following ⁠the ⁠Middle East conflict.

* Next shares rose 4.2% to the ‌top of the benchmark after CEO Simon Wolfson said the clothing retailer has not seen a noticeable drop-off in UK sales since the war started at the end of February.

* Playtech shares ‌fell 12.1%, pushing the stock to the bottom of the midcap index, after the online gambling platform missed revenue estimates for its 2025 fiscal year. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed and Paul Simao)