European markets opened in negative territory as investor risk appetite weakened amid heightened U.S.-Iran tensions and a report of a drone strike near a UAE nuclear facility.
By 03:10 ET (07:10 GMT) on Monday, the blue-chip FTSE 100 had eased 0.15%. Germany's DAX was down 0.60% and France's CAC 40 declined 1.05%. The pound strengthened 0.20% against the dollar to trade at 1.3352.
Market unease accelerated after U.S. President 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 president also issued a stark warning that "the clock is ticking" for Tehran, a tone that amplified investor concern about potential escalation.
Officials in Tehran gave a blunt assessment of the diplomatic outlook. Iranian Foreign Minister Abbas Araghchi was quoted as saying Tehran "cannot trust the Americans at all" and described trust as "the main obstacle to any diplomatic effort." That characterization suggested talks between Washington and Tehran remained stalled, reinforcing fears of a prolonged period of geopolitical risk.
Tensions were heightened further when a drone struck an electrical generator outside the Barakah Nuclear Power Plant in Abu Dhabi on Sunday. Initial suspicion pointed toward Iran. The UAE's nuclear regulator stated there had been no radiological release and that all units at the plant remained operational. Nevertheless, International Atomic Energy Agency Director General Rafael Grossi voiced "grave concern," calling any military activity that threatens nuclear safety unacceptable. A number of countries publicly condemned the attack, including Saudi Arabia, Qatar, Canada and India.
The heightened risk perception on markets came alongside reports that President Trump is expected to convene a Situation Room meeting with his top national security team on Tuesday to consider military options, according to Axios. The president also said he remained open to a diplomatic deal but was awaiting an updated proposal from Iran.
UK corporate developments
In corporate news, Anglo American agreed to sell its Australian steelmaking coal portfolio to Dhilmar Limited, a UK-registered company, for up to $3.875 billion in cash. The transaction was described as part of the miner's ongoing portfolio simplification ahead of its planned merger with Teck.
Anglo American also disclosed that a Chilean tribunal has set aside the environmental permit for the desalination project tied to its Collahuasi copper mine. The miner said it does not currently expect any immediate impact on production while it seeks full clarification of the ruling.
At Standard Chartered, the bank announced a reshuffle of its senior team, appointing Manus Costello as Group Chief Financial Officer on an interim basis with immediate effect, and naming Tanuj Kapilashrami as Group Chief Operating Officer.
Market implications
The combination of sharper geopolitical rhetoric and an attack near a civilian nuclear facility contributed to a pronounced risk-off tone on European bourses. Energy market participants were particularly sensitive to the potential for supply disruption, while investors in mining and banking stocks monitored company-specific developments announced in London.
Given the sequence of events - the social media warnings from the U.S. President, Iran's public mistrust of U.S. intentions, and the drone strike near a nuclear plant - market participants showed caution as they weighed the potential economic fallout from a protracted period of geopolitical instability.