London stocks are expected to open lower on Thursday after Donald Trump’s latest address offered little clarity on ending the Iran conflict.
Futures data indicate the FTSE 100 will open down 95 points, or 0.9%, following Wednesday’s 1.9% rally that saw the index close at 10,364.79.
In his speech, Trump signalled that US military operations would continue for another two to three weeks, describing ongoing strikes as “extremely hard.” He reiterated that Washington aims to dismantle Iran’s military capabilities, curb its regional influence and prevent nuclear development, claiming these objectives are “nearing completion.” He also warned that failure to reach a deal could result in attacks on Iran’s power infrastructure.
Trump further suggested that countries reliant on the Strait of Hormuz should take matters into their own hands, adding that the key shipping route would reopen naturally once the conflict ends.
Iran rejected the stance, with foreign ministry spokesman Esmaeil Baqaei calling US demands “maximalist and irrational” and denying any active ceasefire negotiations.
Despite the geopolitical uncertainty, US equities closed higher on Wednesday, with the Dow Jones Industrial Average rising 0.5%, the S&P 500 gaining 0.7% and the Nasdaq Composite advancing 1.2%.
Asian markets, however, moved lower overnight. Tokyo’s Nikkei 225 fell 2.4%, China’s Shanghai Composite dropped 0.9%, Hong Kong’s Hang Seng declined 1.3%, and Australia’s S&P/ASX 200 closed down 1.1%.
In commodities, gold prices eased to $4,638.79 per ounce, while Brent crude climbed to $107.08 a barrel, rebounding from the previous session.
Currency markets reflected a more cautious tone. Sterling weakened to $1.3219 early Thursday from $1.3324 at the previous London close, and edged down slightly against the euro. The euro also softened against the dollar, while the dollar strengthened against the yen.
