London stocks are expected to open slightly lower on Tuesday following the Easter break, amid rising geopolitical tensions that are weighing on sentiment.
Futures indicate the FTSE 100 will open down 17.3 points, or 0.2%, at 10,418.99. The index last closed up 0.7% at 10,436.29 on Thursday before markets shut for the holiday.
In the US, equities ended Monday on a firmer footing, with the Dow Jones Industrial Average and S&P 500 both gaining 0.4%, while the Nasdaq Composite rose 0.5%.
Bond markets saw yields edge higher, with the US 10-year Treasury yield rising to 4.35% and the 30-year yield reaching 4.91%, reflecting persistent inflation and geopolitical concerns.
Currency moves were modest, with sterling trading at $1.3230 early Tuesday, slightly lower than pre-holiday levels. The euro weakened marginally against the dollar, while the dollar strengthened against the yen.
Asian markets were mixed overnight, with Tokyo’s Nikkei 225 flat, Shanghai up 0.1%, Hong Kong’s Hang Seng down 0.7%, and Australia’s S&P/ASX 200 gaining 1.5%.
Oil prices continued their sharp ascent, with Brent crude climbing to $111.43 per barrel and US West Texas Intermediate reaching $115.47, as markets reacted to escalating rhetoric from Donald Trump.
Trump warned that the US could launch widespread strikes on Iranian infrastructure—including bridges and power plants—within hours if Tehran fails to meet a deadline to reopen the Strait of Hormuz by 1am BST on Wednesday or face severe consequences, adding to uncertainty across global markets.
The escalating situation has heightened concerns over global energy supply disruption, with the strait remaining effectively blockaded since the conflict began.
In response, the UK is convening allied military officials at Northwood to discuss securing the vital shipping route, while maintaining its position against direct offensive action.
