UK equities edged lower at the open on Tuesday, as uncertainty surrounding U.S.-Iran negotiations and ongoing disruption to oil shipments through the Strait of Hormuz dampened investor confidence. Reports indicated that Donald Trump rejected Tehran’s proposal to reopen the crucial shipping route, adding to market unease.
By 07:13 GMT, the FTSE 100 was down 0.10%, while sterling weakened against the dollar to 1.3506. Elsewhere in Europe, Germany’s DAX dropped 0.4% and France’s CAC 40 declined 0.3%.
Markets remained cautious after reports suggested Washington was unconvinced by Iran’s proposal, particularly as it postpones discussions over the country’s nuclear programme.
The U.S. has continued its naval blockade, leaving the Strait of Hormuz largely closed and restricting oil flows. As a result, crude prices stayed elevated, reflecting concerns over tighter supply and the breakdown of Pakistan-brokered talks over the weekend.
Although an indefinite ceasefire remains in place, both sides appear reluctant to enter direct negotiations, increasing the risk of a prolonged diplomatic deadlock.
UK Roundup
BP (LSE:BP.) reported that a short-lived power outage at its refinery in Whiting, Indiana, forced the shutdown of one processing unit.
Ineffable Intelligence secured $1.1 billion in seed funding led by major U.S. venture capital firms, with participation from the UK government.
Chancellor Rachel Reeves is facing pressure from a House of Lords committee to commit to reducing public debt within three years.
Retailers’ Easter promotions on items such as chocolate, home improvement products and clothing helped ease shop price inflation in April.
A consumer advocacy group has launched a legal challenge against the £9.1 billion motor finance compensation scheme, drawing criticism from regulators.
UK consumers’ inflation expectations declined in April, according to a YouGov survey conducted for Citigroup.
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