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Britain said on Thursday its armed forces were ready to protect the country from any attack after Iran's Revolutionary Guards issued a warning over allowing U.S. bombers to fly from UK bases.
The European Central Bank kept borrowing costs unchanged, with the deposit rate remaining at 2.25%. This buys the central bank time to wait for data to judge whether price pressures caused by the Iran war require additional fiscal tightening.
The European Central Bank kept borrowing costs on hold on Thursday but left room for more tightening in the coming months as a widening conflict in the Middle East pushed up energy prices again.
Britain's FTSE 100 was little changed on Thursday. Gains in energy shares were offset by weakness in precious metal miners.
The latest flare-up in fighting probably won't force the European Central Bank's hand on Thursday, even as energy costs creep higher.