FX.co ★ FTSE 100 Trades Lower

The FTSE 100 fell 0.4% on Monday as tensions in the Middle East escalated following the collapse of US–Iran negotiations over the weekend and fresh threats from President Donald Trump to block the Strait of Hormuz. Washington said talks broke down after Iran refused to rule out pursuing nuclear capabilities, while Iranian media blamed what it described as excessive US demands. The impasse drove oil prices sharply higher, lifting energy shares and helping to cap losses in London. BP rose about 1% and Shell gained 1.2%, enabling the FTSE 100 to outperform most major European indices. By contrast, travel stocks came under pressure, with EasyJet down 3.9% and International Airlines Group off 2.6%. Banks were also weaker, as HSBC, Lloyds, Barclays and NatWest declined between 1.3% and 1.7% amid broader risk aversion in the market.