FTSE 100 Falls as US-Iran Talks Stall, Midterm Elections Begin

London's FTSE 100 index declined 1.03% on November 3, 2026, as global equity markets retreated amid geopolitical uncertainty and the start of US midterm elections. Oil prices rose sharply, with Brent crude climbing 1.7% above $106 a barrel, driven by conflicting signals over US-Iran diplomacy and reports of military strikes.

The diplomatic picture remained murky despite recent hopes for progress. While both Washington and Tehran had signaled openness to negotiation, The Wall Street Journal reported a US strike on Iran's Qeshm Island, which boosted oil prices. Amos Hochstein, a former Biden adviser and current managing partner at TWG Global, warned that markets should prepare for the possibility of further strikes even as talks continue. US President Donald Trump downplayed the likelihood of additional attacks, while Vice President James Vance expressed optimism about deal prospects—creating mixed signals that kept investors cautious.

US equity futures showed weakness in advance of market open, with S&P 500 contracts slipping 0.2%. Nasdaq 100 futures remained flat as the artificial intelligence trade steadied after the index entered a technical correction. The subdued sentiment reflected investor concern that America and Iran remained far apart despite diplomatic overtures.

Corporate earnings highlighted sector-specific challenges. Associated British Foods fell 1.78%, with adjusted earnings dropping to £1.10 billion from £1.27 billion year-over-year. Weaker Primark margins and continued difficulties in its sugar business weighed on performance. Analysts cited increased price perception pressures on the retailer alongside a tougher macroeconomic and competitive landscape, particularly outside the UK. Sugar profitability remained weak due to low EU prices and elevated energy costs.

Mixed earnings results elsewhere showed the market's selective sentiment. Coca-Cola Europacific Partners reported a 6.5% year-over-year revenue increase in Q3 and maintained its 2026 guidance for 3-4% revenue growth, yet its shares fell 2.10%. Insurance firm Hiscox rose 2.71% after reporting strong growth in group insurance contract written premiums to $4.44 billion for the first nine months of 2026, up from $4.05 billion a year prior.