Early market roundup: FTSE 100 opens lower as oil price rises amid war

Stock prices in London opened sharply lower on Monday as the price of Brent oil was higher, as the war between US-Israel and Iran continued and Donald Trump threatened to ‘hit and obliterate’ Iranian power plants.

The FTSE 100 index opened down 169.75 points, 1.7%, at 9,748.58. The FTSE 250 was down 513.40 points, 2.4%, at 20,828.57, and the AIM all-share was down points, 2.8%, at 697.89.

The Cboe UK 100 was down 1.8% at 968.77, the Cboe UK 250 was down 2.4% at 18,072.01, and the Cboe small companies was down 0.8% at 16,840.41.

Iran threatened to fully shut the Strait of Hormuz if the US attacks its energy infrastructure, after US President Donald Trump issued an ultimatum. Tehran warned it would strike key infrastructure across the Middle East if Trump carries out his pledge to ‘obliterate’ Iranian power plants unless the strait is reopened swiftly.

Trump wrote on Truth Social that the US would ‘hit and obliterate’ Iranian power plants ‘starting with the biggest one first’ if Tehran does not fully reopen the strait within 48 hours. Iran’s response came after its missiles breached air defences and struck two towns in southern Israel, including one that houses a nuclear facility, underlining its ability to retaliate as the conflict entered its fourth week.

UK Prime Minister Keir Starmer will hold an emergency Cobra meeting on Monday after agreeing with Trump that reopening the Strait of Hormuz is ‘essential’ to stabilise global energy markets.

The move follows a sharp escalation in the crisis, with Iran’s effective closure of the strait pushing oil prices higher. Brent crude traded at $113.85 a barrel early Monday, up from $109.78 late Friday and more than 55% above levels seen before the conflict began in late February.

The meeting, expected to include Chancellor Rachel Reeves, Foreign Secretary Yvette Cooper, Energy Secretary Ed Miliband and Bank of England Governor Andrew Bailey, will focus on energy security, inflation risks and supply chain resilience.

While the UK is unlikely to send naval support given heightened risks, concerns have mounted after Iran attempted to strike a UK-US base. Industry warnings have intensified, with Centrica’s chief executive saying global oil supplies are already down 20% and price increases are ‘inescapable’.

In European equities on Monday, the CAC 40 in Paris was down 1.5%, while the DAX 40 in Frankfurt was down 1.8%.

The pound was quoted at $1.3326 early Monday, slightly higher than $1.3323 at the London equities close on Friday. Against the euro, sterling rose to €1.1544 from €1.1526 a day prior.

The euro traded at $1.1544 early Monday, higher than $1.1527 late Friday. Against the yen, the dollar was quoted at JP¥159.45 versus JP¥159.20.

UK bonds and shares tumbled as traders fully priced in four Bank of England rate hikes for 2026 amid escalating conflict in Iran, which has driven yields sharply higher. At the end of February, markets had expected two rate cuts this year. The shift represents a swing of around 150 basis points in pricing, fuelled by rising inflation fears linked to the war in the Middle East.

Only a handful of equities were in the green on the FTSE 100, with Croda at the top, up 1.5% after Goldman Sachs raised the stock to ’buy’ with a price target of 3,200 pence.

Mining stocks were among the biggest drags on the index amid weaker metals prices. Gold was quoted at $4,259.47 an ounce early Monday, lower than $4,593.70 on Friday. Fresnillo, Endeavour Mining and Antofagasta were among the largest fallers, down 4.0%, 3.9% and 3.6%, respectively.

Anglo American was down 1.5% after saying it will delist its shares from the SIX Swiss Exchange following regulatory approval, as part of a review of its global listings linked to its proposed merger with Teck Resources.

The miner cited low trading volumes in Switzerland and the regulatory burden of maintaining multiple secondary listings. The last day of trading in Zurich is expected to be June 25, with the delisting effective June 26. Anglo American expects to retain its primary listing in London, alongside listings in Johannesburg, Toronto and New York following completion of the merger.

On the FTSE 250, Spire Healthcare plunged 22% after confirming that takeover talks with private equity firms Bridgepoint and Triton have been terminated as part of its ongoing strategic review. Both firms said on Friday they do not intend to make a firm offer. Spire added it remains in discussions with other parties but cautioned there is no certainty that an offer will be made. The company said its board and management are also considering alternative options to drive long-term shareholder value.

Applied Nutrition was the second-biggest faller, down 14%, despite reporting strong first-half growth.

The sports nutrition firm said it will not pay an interim dividend and does not expect further shareholder payouts before financial 2027. Revenue for the six months to January 31 rose 57% year-on-year to £74.5 million, adjusted Ebitda increased 56% to £21.5 million and pretax profit climbed 80% to £20.9 million. It reiterated full-year revenue guidance of around £140 million but flagged some reduction in Middle East volumes due to disruption. Construction has begun on a new facility aimed at lifting revenue capacity to £300 million.

Among smaller caps, Cohort was down 2.6% after saying its Australian subsidiary EM Solutions has secured a contract worth A$21.7 million, around £11.5 million, to supply satellite communications systems to the Portuguese Navy. Deliveries of Cobra and King Cobra terminals are scheduled through to 2030.

In Asia on Monday, the Nikkei 225 index in Tokyo closed 3.5% lower. In China, the Shanghai Composite ended down 3.6%, while the Hang Seng index in Hong Kong closed 3.5% lower. The S&P/ASX 200 in Sydney closed down 0.7%

In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.0%, the S&P 500 down 1.5% and the Nasdaq Composite down 2.0%.

The yield on the US 10-year Treasury was quoted at 4.41%, widening from 4.37%. The yield on the US 30-year Treasury was quoted at 4.96%, widening from 4.94%.

Still to come on Monday’s economic calendar are Spain’s trade balance, Ireland producer prices and eurozone consumer confidence.

Copyright 2026 Alliance News Ltd. All Rights Reserved.