FTSE 100 dips as Rio Tinto results dissapoint, US-Iran tensions weigh

Feb 19 (Reuters) - London's FTSE 100 dipped from record highs on Thursday, weighed down by Rio Tinto after the global miner missed expectations for annual earnings, while simmering U.S. and Iran tensions kept investors cautious.

The blue-chip index .FTSE was down 0.7% at 1101 GMT, after closing at a record high for two straight sessions. The domestically focused mid-cap FTSE 250 .FTMC was down 0.5%.

Rio Tinto fell 4.4% after the miner reported flat annual earnings that missed expectations as its mainstay iron ore business suffered from lower prices, which were offset by a strong performance from its copper division.

Investors globally were unnerved as Washington and Tehran ramped up military activity across the oil‑rich Middle East, even as talks on Tehran's nuclear programme in Geneva showed signs of progress.

In recent days, UK stocks have found support from upbeat corporate earnings, expectations of monetary policy easing as well as inflows from investors looking to diversify away from U.S. stocks that have been pressured by AI-disruption concerns.

Among other movers, London Stock Exchange Group LSEG.L rose 0.7% after reports that activist investor Elliott Investment Management is pressing the exchange operator to conduct a full review of its portfolio and launch a 5 billion pound ($6.76 billion) buyback.

British Gas owner Centrica CNA.L fell 5.3% to the bottom of the blue-chip index after the company warned that 2026 profit at its energy trading arm would miss forecasts and paused its share buyback programme after reporting a 39% drop in annual profit.