Apple said in a statement that it expects to get more than 15 billion US-made chips, marking the largest commitment under its 'American Manufacturing Program' launched last year.

2.46pm: Dow Jones retreats at open, Nasdaq mixed 

US stocks have opened in the red, but losses for the tech-led Nasdaq are already pared almost to flat.

The Dow Jones has fallen 0.9% and the S&P 500 is down 0.4%, while the Nasdaq sits 0.1% lower.

Sherwin-Williams, Home Depot, IBM and Boeing were among the biggest fallers on the Dow, while software stocks including Palantir, Datadog and Workday weighed on the Nasdaq.

For the tech-heavy exchange, Western Digital rose 3.8% to lead the gains, followed by Broadcom, up 2.8%, while memory groups SanDisk and Seagate Technology, chip equipment makers Applied Materials and Lam Research, and energy names Baker Hughes and Diamondback Energy also advanced. 

1.49pm: Natural gas up too

UK European gas prices have also surged in the past couple of days, as an increase in strikes on commercial shipping in the Strait of Hormuz led to the US and Iran exchanging strikes and President Trump indicating he felt the ceasefire is "over". 

UK wholesale gas prices jumped to above 117p per therm today, up from just below 102p a week ago.

The European benchmark gas contract topped out at above €49 per megawatt hour earlier, its highest level in almost a month, but has eased back to €48.33 now. 

BP, Shell and British Gas owner Centria are three of the top four risers on the FTSE 100 still, though they have been joined by over a dozen others now.

Insurers Admiral, Hiscox, investors Pershing Square, Scottish Mortgage, F&C Investment Trust, along with grocers Tesco and Sainsbury's are among those with shares also in green. 

12.53pm: US futures down

US stock futures are pointing to another weak session for Wall Street, with investors rattled by rising oil prices, with inflationary fears leading to pressure from the bond market.

Dow Jones futures are down 1.1%, with S&P 500 futures pointing to a 0.9% drop, while those for the Nasdaq are off 1.3%.

The spike in oil has fuelled inflation concerns, pushing Treasury yields higher and prompting traders to dial back expectations of interest rate cuts.

"The CME's FedWatch Tool now shows that the probability of at least one 25-basis point rate hike from the Fed before year-end is over 85%," says market analyst David Morrison at Trade Nation.

"In this regard, investors will pay close attention to minutes from the Fed's last monetary policy meeting in June which will be released later this evening.

"But, with new Fed Chair, Kevin Warsh, unwilling to provide forward guidance, it's debatable if the minutes will be that helpful in understanding the Fed's outlook for rate hikes this year."

12.06pm: Hormuz far from straightforward issue

At midday, the FTSE 100 is down around 150 points, with almost all sectors in the red apart from oil producers, British Gas owner Centrica and a couple of other companies. 

Brent crude is the commodity to watch today, up 6.2%. 

The latest reports from the Middle East include one from Iran's semi-official Fars news agency, which says an Indian oil tanker has been turned back from the Omani corridor in the Strait of Hormuz, with the Islamic Revolutionary Guard Corps continuing to warn ships via radio to use the Iranian corridor instead. 

Last month, Oman and the UN's International Maritime Organization announced a temporary corridor in the strait along the Omani coast that would be overseen by the US for the evacuation of vessels stranded in the Gulf.

Ship tracking showed all vessels that transited the Strait of Hormuz this morning travelled along the corridor approved by Iran, according to Fars.

Kaja Kallas, the EU representative for foreign affairs and security, critised Iran's attacks on Bahrain and Kuwait as "unacceptable" and that attacks on ships near the strait violate the memorandum of understanding with the US and "threaten to disrupt the resumption of energy supplies".

11.56am: Housebuilders under pressure

Housebuilders shares are down today on the renewed rate worries sparked by rising oil prices, while JP Morgan has also put out a note warning that uncertainty over a potential overhaul of UK property taxes could slow housebuilder sales in the short term, despite judging the proposed reforms positive for the sector over time.

Analyst Zaim Beekawa says speculation around housing policies reportedly being considered by expected next Prime Minister Andy Burnham, including replacing council tax and stamp duty with an annual property tax, could weigh on activity as buyers delay decisions.

He compares the situation with the run-up to the 2025 Autumn Budget, when uncertainty also dented sales rates.

Among housebuilders, the analyst sees Persimmon as best placed to weather any disruption because of its lower exposure to stamp duty, while Taylor Wimpey faced greater earnings risk.

Berkeley is predicted as a potential beneficiary from stronger transaction levels in London, although a recurring property tax could weigh on house prices in the capital, Beekawa says.

11.20am: Oil spike renews rate hike worries

More thoughts on the Middle East situation, which has seen Brent crude oil surge over 6% to almost $79 a barrel this morning.

"Geopolitical risks are rising," says market analyst Kathleen Brooks at XTB.

After 80 strikes were carried out by US forces, Iran resumed attacks on its Gulf neighbours, including against Bahrain and Kuwait, leading President Trump to say the ceasefire is "over".

As Brooks says, "It is worth noting that the President did not explicitly state that the war is back on, and he backtracked slightly by saying that he will let his negotiators deal with it.

"However, today's events suggest that the diplomatic path to ending this war is not easy." 

While there have been escalations in tensions between Iran and the US in recent months, this week's events "are a sign that diplomatic efforts to end the war have ground to a halt", Brooks adds.

The oil price spike is leading to a recalibration of rate hike expectations, although she adds that there is still only one US Federal Reserve hike priced in for this year, and less than 50% chance of a second hike.

"If the geopolitical situation deteriorates further or if oil prices rise back above $100 per barrel, then we could see two hikes plus get priced in for the US, the UK and for Europe."

10.41am: Virgin Media fined after staff kept customers on hold to stop them leaving 

Ofcom has fined Virgin Media a record £28 million after finding the US-owned telecoms group deliberately made it harder for customers to cancel contracts and switch providers.

The UK regulator said millions of calls between January 2022 and September 2024 were likely to have been mishandled, with customers subjected to unnecessary transfers, repeated periods on hold and, in some cases, deliberately dropped calls.

The regulator also found the commission scheme operated by Virgin Media rewarded call centre staff for discouraging cancellations. Virgin is owned by New York-listed Liberty Global (NASDAQ:LBTYA) . 

Natalie Black, Ofcom's group director for infrastructure and connectivity, said: "The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation."

Ofcom noted that Virgin Media has since changed its commission scheme, staff training and monitoring processes.

As part of the decision, Virgin Media is required to check that every affected customer who complained has received the compensation or other remedies they were entitled to. The company must complete this in six months.

10.20am: European stocks and US futures plunge

London's blue-chip index is back below 10,500, where it was at the start of the month.

The fall of 1.6% for the Footsie compares to a 2% drop for the mid-cap FTSE 250 and larger losses on mainlaind Europe, with Germany's DAX down 2.3% and France's CAC 40 slipping 2.1%.  

"President Trump woke up in a very bad mood," says market analyst Neil Wilson at Saxo, after the US leader said the ceasefire between the US and Iran was "over".

The mood was already low at the open after the US strikes on Iran were followed by Iranian attacks on Bahrain and Kuwait.

"Trump's remarks set sparks flying - the comments underscored fears that we could see further escalation and a return to pre-MOU conditions," says Wilson, though he adds, "for what it's worth I don't think this is the base case as a) Trump is wont to throw around threats and b) both sides need to return to a kind of hazy pre-war 'normality'.

"But it clearly seems the risk of a total breakdown in negotiations has increased and markets are reflecting this fresh dynamic. Rotation out of semis is stalling and becoming more like a broader downturn for risk assets."

Spain's IBEX is feeling the heat, down 2.6% as Trump reserved extra vitriol for them, calling for cutting all trade ties.

He told reporters on the sidelines of the Nato summit that he had ordered Treasury Secretary Scott Bessent to cut off all trade and commercial ties with Spain.

"We don't want to do any trade business with Spain any more," Trump was reported as saying. "Spain is a terrible partner in NATO. They don't participate, they don't pay."

US futures have moved sharply lower too, with the Nasdaq predicted to open down 1.5%, the Dow Jones 1.3% lower and the S&P 500 called down 1%, as bond yields moved up on inflation concerns, with the dollar also perking up.  

9.34am: FTSE plunges further as Trump says Iran ceasefire 'over'

The FTSE 100 has plunged over 140 points, with all but seven stocks in negative territory now.

Various sectors are weighing, with defence and aerospace a surprise presence as Babcock falls 4.5% and Melrose down 3.8%. 

Precious metals miner Fresnillo is down 3.75%, though gold and silver have dipped only slightly. 

Oil prices have spiked higher again, after Donald Trump said he thought the ceasefire with Iran was "over".

Brent crude is up 4.8% at $77.70 now, compared to below $72 at the start of the week 

"To me, I think it's over," Trump told reporters at the Nato summit, when asked about the 'memorandum of understanding' deal.

"I don't want to deal with them anymore. They're scum... They're led by sick people... I'll speak to our negotiators. They want to negotiate - they're good people... but they have to come back to me. As far as I'm concerned, it's just a waste of time dealing with them."

9.13am: Vistry analysis

Vistry shares have dropped 9% after its unscheduled trading update contained a second profit warning in four months.

Analyst Adrian Kearsey at Panmure Liberum says: "The new CEO clearly appreciates that the group needs to take on board a considerable amount of short-term pain (1) to address the indebted balance sheet, (2) to address the cost base, and finally (3) to address the terms of certain unfavourably structured Partnership contracts."

As previously flagged, management are focused on reducing indebtedness by reducing work in progress and excessive levels of finished product.

"Given the challenging environment, the sell down of inventory is difficult," Kearsey adds, with the problem compounded by the time it takes for sales to complete.

He says the £150 million outflow of land creditors and an unspecified reduction in accounts payable is a consequence of efforts to address an unsustainable net working capital position, resulting in higher average net debt in the first half.

"These actions, including the restructuring of the cost base and unfavourable contracts, combined with the challenging macro environment, means that the first half performance is massively subdued."

Charlie Campbell at Stifel notes that management is confident of achieving a much better profit performance in H2 due to: "a better weighting of completions in H2, the flow of funds from the Strategic Affordable Housing Programme, some transactions moving from H1 into H2, slower rate of actions to generate cash, reduction in overheads, more land sale profits and improved margins from new sites".

He thinks the lowly valuation at 0.3x book at historical cost "should provide some support for the shares, but we think worries over cash flow and the debt profile will persist".

"We believe the market will need to see consistent execution on P&L and cash measures, a peak in UK bond yields and a calmer macroeconomic backdrop. We also think the market will discount the risk of a further reset in September, when the CEO review will be announced alongside H1 results."

8.33am: Jet2 flies higher

Shares in Jet2 have flown 12% higher after the package holiday company's new buyback and strong summer booking momentum.

Analyst Gerald Khoo at Panmure Liberum says results "appear in line with our forecasts and consensus".

Profits fell, reflecting strong capacity growth and the associated requirement for discounting.

"The outlook appears relatively encouraging. Although bookings remain close-in, reduced geopolitical uncertainty has seen improved booking momentum in recent weeks, albeit with targeted discounting... A new £250m share buyback implies confidence in the outlook and the balance sheet. Consensus is fragmented given the geopolitical uncertainties and fuel price volatility, but we would expect upward pressure on balance."

8.15am: FTSE flops at open

The FTSE 100 tumbled over 80 points lower in early trade, to 10,584, with only a dozen of the index not in red. 

Biggest early fallers are Melrose Industries, Compass, Fresnillo and Croda, while the mining sector are all fairly heavy fallers. 

Among other heavyweights, AstraZeneca, Rolls-Royce, GSK, Compass, NatWest, LSEG and RELX are all down over 1%.

BP is top riser, up 2.3%, with Centrica up 1.3% and Shell 1%. 

8.01am: Jet2 unveils buyback and top-end profits 

Jet2 has announced a £250 million share buyback as profits came in at the top of its guidance range and it said capacity and booked passenger numbers are both up around 7% for this summer.

The package holiday operator and airline revealed operating profit slipped 2% to £439.6 million, though this was at the top of its previously guided operating profit range of around £435-440 million given in April. 

Chief executive Steve Heapy called it "another period of strong progress for Jet2" and "a resilient operating profit performance even after absorbing Gatwick start-up investment and wider industry cost pressures".

7.50am: Vistry warns on profits again

Vistry Group has warned that it expects to report a first-half loss after its new chief executive accelerated measures to cut debt, reduce stock and reshape the housebuilder's operations.

The partnerships-focused housebuilder said it expects a loss before tax of about £30 million for the six months to 30 June after taking a £50 million hit from actions including heavier discounts on slower-selling homes, asset sales and reductions to its landbank.

Excluding those measures, it would have made about £20 million profit before tax, which would still have been a huge drop from the £260 million-plus in the past two years. 

Vistry issued a profit warning in May, just after new boss Adam Daniels was promoted to the role. 

Alongside the update, Vistry notified that chief financial officer Tim Lawlor is leaving "to take up a CFO role in a large privately-owned business in a different sector".

He will remain with the company until October, following publication of the HY results and completion of Daniels' CEO review.

7.32am: Iran strikes raise inflation concerns

The developments in Iran "have reignited concerns about energy supplies and geopolitical risk," says Jim Reid at Deutsche Bank. 

Fresh attacks on ships in the Strait of Hormuz this week have seen the most incidents since the US-Iran interim agreement came into effect on June 17, he notes.

After Iran vowed a response it raises "concerns that the fragile peace process reached last month could unravel before negotiations on a permanent settlement are completed.

"While US officials have stressed that talks towards a longer-term accord continue, the latest escalation represents the most serious test yet for the ceasefire," he says. 

Even before the overnight strikes, oil had been rising, meaning markets "struggled to gain traction yesterday, as the jump in oil prices revived familiar fears about stagflation", which led to "clear pain" for US Treasuries and other government bonds. 

Reid also flags the Nato leaders' summit continuing for a second day today, with President Trump saying yesterday that the US "could remove all our soldiers out of Europe" and reiterated his desire for Greenland to be under US control.

Reports emerged of various defence industry deals agreed, with Bloomberg reporting over $50 billion of contracts. 

Looking at the day ahead, he highlighted the FOMC's June meeting minutes and flagged that tomorrow will see nominations open for the Labour leadership contest to decide the next PM, with Andy Burnham currently the only declared candidate.  

FTSE 100 Live pre-open

London and European stocks are set to open lower on Wednesday as oil prices climbed to a two-week high after a major escalation in US-Iran tensions overnight.

FTSE 100 futures are down roughly 30 points, more than wiping out the gain of just over 14 points made the day before when the index closed at 10,665.88. 

US forces launched strikes against more than 80 targets in Iran, hitting command-and-control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 Islamic Revolutionary Guard Corps small boats.

This was said to be in response to recent attacks on commercial shipping in the Strait of Hormuz and came alongside the US revoking a waiver that had allowed Iran to restart oil exports.

Iran condemned the American measures as breaching the ceasefire agreement and vowed a "decisive" response.

Brent crude has jumped 3.3% to $76.64 this morning. 

Before that, the Wall Street session saw a selloff in semiconductor stocks overshadow an early high for the Dow Jones. 

The Nasdaq led the declines, falling 1.2%, while the S&P 500 slipped 0.5% and the Dow 0.3%.

Newly added Nasdaq 100 constituent SpaceX had a difficult first day in the index, with shares tumbling 6.8% as investors took profits following last month's blockbuster IPO.

Asian markets are mixed, with South Korea's Kospi falling 4.6% to a six-week low, but the Hang Seng is up 3.1%, led by Chinese tech giants.