Stocks in London are set to open lower on Monday, with renewed Middle East tensions and rising oil prices weighing on investor sentiment.
Futures indicate the FTSE 100 will open around 60 points lower, down 0.6% at 10,540.53. The index had closed marginally weaker at 10,600.53 on Friday.
Geopolitical risks remain front and centre after JD Vance confirmed that the US and Iran failed to reach an agreement following extended negotiations in Islamabad. Washington had sought firm assurances from Tehran over its nuclear programme, but no breakthrough was achieved.
Oil prices have surged sharply, with Brent crude climbing 7% to $101.88 per barrel, while U.S. crude has risen more than 8% to $104.69—approaching the near-$120 highs seen earlier in the conflict.
The move higher comes as Donald Trump said he had instructed the U.S. Navy to “interdict” any vessel that has paid Iran for passage through the Strait of Hormuz, in an effort to restrict Iranian oil flows and tighten global supply.
In currency markets, sterling weakened to $1.3407 and €1.1470, while the euro also slipped against the dollar. The greenback strengthened further versus the yen, rising to ¥159.70.
In the UK, Chancellor Rachel Reeves warned that the conflict with Iran would carry economic consequences for households and businesses, though she reaffirmed the government’s commitment to providing support where needed. The UK is set to host further talks aimed at restoring safe passage through the Strait of Hormuz.
Overseas, Wall Street ended mixed on Friday, while Asian markets were broadly weaker on Monday, with losses in Tokyo, Hong Kong, and Sydney reflecting the cautious global tone.
