Investing.com — British stocks opened lower on Monday as escalating tensions between the United States and Iran rattled investor sentiment following the seizure of an Iranian-flagged vessel near the Strait of Hormuz, raising fears of further disruption to global energy flows and derailing diplomatic efforts.
At 03:13 ET (07:13 GMT), the blue-chip index fell 0.4%, reversing last week’s 0.7% gain, while the British slipped 0.04% to 1.3512. The fell 1.1% and the was down 1%.
The risk-off mood intensified after Donald Trump said in a Truth Social post on that Iran had violated the ceasefire, warning that Washington could escalate military action if Tehran refuses a proposed deal.
Trump added that the US had already “taken custody” of the vessel and threatened to target key Iranian infrastructure if tensions worsen.
Iranian officials responded by signaling potential retaliation, with military authorities warning the seizure would be treated as a breach of the ceasefire.
State media also indicated Tehran may skip upcoming negotiations in Islamabad unless the US lifts its naval blockade, underscoring widening gaps between both sides on sanctions, uranium stockpiles and control of the strategic waterway.
Oil prices rebounded sharply as concerns over shipping disruptions through the Strait of Hormuz resurfaced, adding pressure to equities and reinforcing inflation worries.
UK round-up
reported a 26.1% drop in like-for-like operating profit for 2025 and scrapped its final dividend in favour of share buybacks.
The company warned that the Middle East conflict is expected to significantly impact its sport and entertainment business in 2026, adding to pressure from weaker consumer conditions and geopolitical uncertainty.
reported its strongest quarterly performance in over five years, driven by rapid U.S. growth, rising customers, and solid profitability despite trading headwinds.
delivered a strong FY26 turnaround with 5.7% annual growth, fueled by a sharp second-half rebound across all regions and channels.
confirmed it is in talks with Bally’s Intralot S.A. over a potential 50p-per-share acquisition. The proposed deal may include a mix of shares and cash, though no firm offer is guaranteed, with a decision deadline set for May 18.
raised its FY26 outlook, driven by strong demand in semiconductors and aerospace, boosting revenue and profit expectations.
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