The FTSE 100 fell more than 0.5% on Monday as renewed tensions between the US and Iran hit market sentiment, sending oil and gas prices sharply higher. The move followed the seizure of an Iranian vessel by the US Navy, after which Tehran reportedly fired at ships and again shut the Strait of Hormuz. Iran said its actions were a response to a US blockade of associated vessels, which it claims violated a ceasefire agreement.
Travel stocks led the declines, with EasyJet and IAG both down more than 3%. Major banks were also weaker: HSBC, Lloyds, Barclays and NatWest fell between 1.4% and 2.5%. Rolls-Royce lost around 3%.
Miners came under pressure as well, with Antofagasta sliding more than 4%, while Fresnillo and Endeavour dropped 3% and 2.4% respectively. By contrast, energy majors benefited from the spike in crude, with BP and Shell among the FTSE 100’s top performers, gaining 3.1% and 2.4%.
