FTSE 100 Trades Lower

The FTSE 100 slipped 0.4% on Monday as Middle East tensions intensified following a collapse in US Iran negotiations over the weekend and renewed threats from President Donald Trump to block the Strait of Hormuz. Washington said talks broke down after Iran refused to rule out pursuing nuclear capabilities, while Iranian media pointed to excessive US demands. The standoff sent oil prices sharply higher, supporting energy stocks and helping limit losses in London, with BP up around 1% and Shell gaining 1.2%, allowing the index to outperform European peers. Travel stocks came under pressure, with EasyJet and International Airlines Group falling 3.9% and 2.6% respectively. Banks also weakened, as HSBC, Lloyds, Barclays and NatWest declined between 1.3% and 1.7% amid broader market caution.

The FTSE 100 Index is falling -40 points. Losses were driven by Easyjet Plc (-3.78%), Vistry Group (-3.59%) and International Airlines Group (-2.65%). Biggest rises came from Admiral (1.75%), Shell (1.27%) and Imperial Brands (1.26%).

The FTSE 100 pared early gains to close virtually flat at 10,601 on Friday, but staying near the highest in a month, driven by cautious optimism ahead of weekend US-Iran talks. Deep divisions remain, however, starting with the issue of the Strait of Hormuz, coupled with the inclusion of the Lebanon on the ceasefire agreement. Metals and mining stocks, along with retailers, provided the main support, while the aerospace and defense sector struggled. In equities, Convatec Group led the gains, rising 4.5%, followed by Endeavor Mining and Antofagasta, each rising over 3%. Kingfisher and Burberry Group also advanced solidly, up 2.7% and 2.1%, respectively. On the flip side, Metlen Energy & Metals plunged nearly 9% following weak annual results reported the previous day. Defense names like BAE Systems and Babcock International fell 3.3% and 1.7%, respectively. Compass Group lost 1.9% after a weak update from French rival Sodexo. For the week, the index rose 1.6%.