Tesco shares fell 4% after reporting results, leading losses on the FTSE 100.

Al Jazeera reported US President Trump said the US holds a "very favorable" position on Iran both militarily and economically and described the standoff as "a small skirmish." Asked whether he had abandoned talks with Iran, Trump replied: "No, I don't think we're negotiating at the moment. In any case, there will be a result, and it will be clear soon." He added most people expect any resolution to wait until after the midterm elections and said "everything we've done on Iran has been terrific."

Nikkei 225 fell 2.65% to 62,907.84, its lowest close since July 30, as risk-off sentiment weighed. InTouch Capital Markets said investors are questioning whether the latest round of AI company results are sufficient to support currently elevated valuations and ongoing large-scale investment in computing infrastructure. The firm added that renewed geopolitical concerns are amplifying pressure on growth-sensitive markets.