UK equities traded lower on Monday as escalating tensions surrounding the U.S.-Iran conflict weighed on investor sentiment after reports of new drone strikes targeting a UAE nuclear facility and fresh warnings from U.S. President Donald Trump toward Tehran intensified concerns over global energy supply disruption.
The FTSE 100 fell 0.15%, while Germany’s DAX declined 0.60% and France’s CAC 40 lost 1.05%. Sterling strengthened 0.20% against the dollar to 1.3352 as of 03:10 ET (07:10 GMT).
Trump warning and nuclear facility attack deepen market concerns
Market anxiety increased after Trump posted on Truth Social on Sunday that Iran must “get moving, FAST, or there won’t be anything left of them,” adding that “TIME IS OF THE ESSENCE.”
The remarks came as negotiations between Washington and Tehran appeared stalled, with Iranian Foreign Minister Abbas Araghchi stating that Tehran “cannot trust the Americans at all” and describing trust as “the main obstacle to any diplomatic effort.”
Fresh concerns also emerged after a drone struck an electrical generator outside the Barakah Nuclear Power Plant in Abu Dhabi on Sunday, with suspicion quickly turning toward Iran.
The UAE’s nuclear regulator confirmed there had been no radiation leak and that all plant units remained operational. However, International Atomic Energy Agency Director General Rafael Grossi expressed “grave concern,” warning that military activity threatening nuclear safety was unacceptable. Saudi Arabia, Qatar, Canada and India were among the countries condemning the attack.
Axios reported that Trump is expected to convene a Situation Room meeting with senior national security officials on Tuesday to discuss military options, although the president also said he remained open to negotiations if Iran presents a revised proposal.
UK corporate developments
Anglo American (LSE:AAL) agreed to sell its Australian steelmaking coal operations to UK-registered Dhilmar Limited for up to $3.875 billion in cash, continuing its strategy of simplifying the business ahead of its planned merger with Teck Resources.
The miner also disclosed that a Chilean tribunal had overturned the environmental permit for the desalination project linked to the Collahuasi copper mine, although Anglo said it does not currently expect any immediate impact on production while the implications of the ruling are clarified.
Meanwhile, Standard Chartered (LSE:STAN) appointed Manus Costello as interim Group Chief Financial Officer with immediate effect and named Tanuj Kapilashrami as Group Chief Operating Officer as part of broader changes to its senior leadership structure.
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