London markets began the session under pressure as international tensions in the Middle East persisted, with a U.S. 48-hour deadline tied to Hormuz and Iran signalling only a partial reopening to neutral vessels. Traders responded swiftly to the heightened uncertainty.
At 08:10 GMT the FTSE 100 was trading 1.5% lower. The British pound weakened, with GBP/USD down 0.3% at $1.3306. Elsewhere in Europe, Germany's DAX fell 1.9% and France's CAC 40 slipped 1.5%.
Company-specific moves added to the early market weakness. Applied Nutrition PLC (LON:APNA) shares tumbled more than 16% in early Monday trade after the UK supplements group warned that volumes in the Middle East would be softer as a result of the Iran conflict. Management nevertheless maintained the company's full-year revenue guidance.
On the domestic political front, Prime Minister Keir Starmer publicly denounced an overnight arson attack targeting ambulances serving London's Jewish community, calling it a disturbing act of antisemitic hatred. In a post on X, Starmer said: "This is a deeply shocking antisemitic arson attack. My thoughts are with the Jewish community who are waking up this morning to this horrific news. Antisemitism has no place in our society."
The government confirmed that Starmer intends to meet senior ministers - including Rachel Reeves, Yvette Cooper and Ed Miliband - as well as Bank of England Governor Andrew Bailey, to discuss the economic implications of the crisis. The meeting was described in official channels as a planned review of potential economic impacts.
Market context and implications
Investor focus remained on the interaction between geopolitical developments in the Middle East and market sentiment in the UK and Europe. Movements in currency and equity indices reflected risk-off positioning in the early session, while corporate sensitivity to regional trade and volume disruption was visible in specific stock moves.
What to watch next
- How tensions around Hormuz and related developments affect regional trade flows and company volumes.
- Domestic political developments tied to the arson attack and any economic policy discussions that emerge from ministerial and Bank of England consultations.
- Earnings and guidance updates from companies with Middle East exposure, which may further influence sector and index performance.