UK equities moved slightly lower on Monday as investors awaited tougher U.S. sanctions against Iran while a steep decline in Asian technology shares contributed to a broader risk-off tone across global markets.
As of 03:18 ET (07:18 GMT), the FTSE 100 was down 0.03%. Germany’s DAX declined 0.25%, while France’s CAC 40 slipped 0.18%. Sterling was little changed against the U.S. dollar, with GBP/USD trading at 1.3643.
Iran Sanctions Remain in Focus
Investor attention remained firmly on Washington as markets awaited further economic measures targeting Tehran.
U.S. Treasury Secretary Scott Bessent described the campaign as entering an “endgame” in a post on social media platform X and warned of an “economic D-Day”.
Iran’s Supreme National Security Council Secretary Mohsen Rezaei responded by warning that Tehran could stop oil exports through the Strait of Hormuz. He also said countries supporting the U.S. campaign could be regarded as committing an “act of war”.
The comments kept geopolitical risks at the forefront for investors, particularly given the Strait of Hormuz’s importance to global energy supplies.
Asian Technology Shares Come Under Pressure
Negative sentiment was reinforced by heavy selling across Asian technology stocks. South Korea’s KOSPI fell sharply, while Hong Kong’s Hang Seng dropped approximately 2.1%.
Samsung Electronics and Alibaba were among the notable technology names under pressure during the Asian session, adding to caution ahead of several potentially significant events for global markets this week.
Investors are preparing for Nvidia’s (NASDAQ:NVDA) earnings on Wednesday, while Federal Reserve Governor Kevin Warsh’s speech at Jackson Hole later in the week is also expected to attract attention.
Johnson Says Iran Conflict Entering “new phase”
Speaker Mike Johnson said in an interview with Fox News that the United States was moving into a “new phase” of the conflict with Iran and that allied countries would provide assistance.
Johnson also said Republicans could retain control of the House of Representatives even if the conflict continued through the November midterm elections.
Oil Prices Fall While Gold Advances
Oil prices moved lower despite the continuing geopolitical uncertainty. Brent crude declined 1.7% to $91.09 a barrel, while WTI fell 2.1% to $85.25.
Gold moved in the opposite direction as demand for defensive assets increased. December gold futures gained 0.42% to $4,700.31, while spot gold rose 0.9% to $4,644.70.
UK Round-Up
Shell (LSE:SHEL) has reportedly attracted interest from ExxonMobil, LyondellBasell, Apollo and Kuwait Petroleum for its U.S. chemicals operations.
The portfolio could be valued at as much as $8 billion, according to a Financial Times report on Monday, as Shell considers the disposal of underperforming chemicals assets.
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