London markets are expected to open lower on Tuesday as investors assess renewed uncertainty surrounding the fragile Iran ceasefire and mounting political pressure on the UK Prime Minister
London’s blue-chip index is set for a weaker open on Tuesday, with FTSE 100 futures down around 64 points after the benchmark began the week with modest gains.
The FTSE 100 closed 36 points higher on Monday at 10,269.43, but investor sentiment has since weakened amid ongoing geopolitical tensions and growing political uncertainty in the UK.
Investor sentiment remains cautious after US President Donald Trump warned that the Iran ceasefire was on “life support” following Tehran’s rejection of Washington’s latest demands.
Trump said he was considering restarting US naval escorts through the Strait of Hormuz under a revived “Operation Freedom” initiative aimed at protecting commercial shipping routes amid escalating regional tensions.
Iranian parliamentary speaker Mohammad Bagher Ghalibaf responded by saying Tehran was prepared “for any eventuality,” further underscoring fears of renewed instability in the Middle East.
Oil prices remained elevated as geopolitical risks intensified, with Brent crude trading at USD104.98 per barrel early Tuesday, up from USD103.70 late Monday.
Trump also indicated he was considering suspending the US federal gasoline tax to ease pressure on consumers facing rising fuel costs linked to the conflict. Any such move would require congressional approval.
In the UK, political uncertainty deepened as reports suggested senior Labour figures were questioning Starmer’s leadership following recent election setbacks. Several government aides have reportedly resigned, while cabinet ministers are said to be urging the prime minister to consider his position.
Currency markets reflected a cautious tone, with sterling weakening against both the dollar and euro. The pound traded at USD1.3573 and EUR1.1545 respectively in early trading.
On Wall Street, US equities ended modestly higher on Monday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all posting gains.
Asian markets were mixed overnight. Japan’s Nikkei 225 rose 0.5%, despite weaker-than-expected household spending data showing a 2.9% annual decline in March. Chinese equities were subdued, with the Shanghai Composite down 0.4%, while Hong Kong’s Hang Seng edged 0.1% higher.
Gold prices eased marginally, trading at USD4,714.71 per ounce early Tuesday compared with USD4,733.27 on Monday.
