The FTSE 100 edged lower at the open on Monday as rising tensions between the US and Iran drove oil prices and government borrowing costs higher.
London’s blue-chip index slipped 0.2% to 10,197.57, while the more UK-focused FTSE 250 fell 0.5% to 22,483.14.
Investor sentiment remained cautious after renewed pressure from US President Donald Trump on Iran pushed Brent crude above USD111 per barrel, fuelling concerns over inflation, interest rates and the wider economic outlook.
Bond markets came under renewed pressure after Trump warned Iran that “the clock is ticking” to reach a permanent agreement to end the war.
Posting on Truth Social, Trump said: “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!”
The comments intensified concerns over further escalation in the Middle East, driving oil prices sharply higher and weighing on global equity markets amid fears of slower economic growth and renewed inflationary pressure.
