FTSE 100 Live: Stocks open lower as airlines and banks fall in Iran war reaction

Although US President Donald Trump said attacks against Iran volition proceed "until each of our objectives are achieved" in a video address last night, galore marketplace observers bash not expect warring to proceed for long.

The struggle is apt to person a "sharp but short-lived" interaction connected lipid and state prices, says George Lagarias, main economist astatine Forvis Mazars.

Oil prices are present up 30% since past December and year-on-year affirmative for the archetypal clip since December 2024.

"This has little to bash with Iran’s productive capableness (only 3% to 5% of planetary production), immoderate of which OPEC+ suggested it tin rapidly marque up for, and much to bash with the effectual closing of the Straits of Hormuz," helium points out.

"Our basal lawsuit is that the portion and vigor markets person prepared for the contiguous eventuality, and it is simply a substance of clip earlier contingency plans go operational that would let lipid to travel beyond Iranian chokepoints.

"However, if determination are unwelcome surprises, prolonged vigor marketplace volatility could person a very quick effect connected US inflation, whose consistently lower-than-expected numbers have, frankincense far, mitigated immoderate of the much acute consequences of the commercialized wars.

"Similarly, higher vigor prices could wounded already sluggish GDP maturation successful Europe and the UK."

Some details connected commodity terms moves.

Brent crude lipid is up astir 10% to conscionable nether $80 a barrel, with US WTI rising 9% to conscionable implicit $73 a barrel.

UK earthy state prices are up 25% to 98.5p per therm, not acold from spikes successful January, which were the highest successful 10 months.

Gold is up 2.4% to supra $5,400 an ounce, not acold from its grounds precocious successful January. Silver is up 1.7% to $95.4/oz.

Copper prices are down 0.7%, with ember and alloy down too, with robust ore flat.

The FTSE 100 has dropped 82 points to 10,828 successful archetypal trades astatine the commencement of the week, with airlines, hotels, banks and retailers driving the downside.

British Airways proprietor IAG is the biggest faller, down 9.78%.

It is followed by events organiser and concern information supplier Informa, down 6.7%, and hotelier IHG, down 5.3%.

Barclays, easyJet, Standard Chartered, HSBC and Burberry are next, each down implicit 4%.

Risers are led by defence companies, with BAE Systems rising 6.9%, followed by precious metals miner Endeavour, up 5.6%, and lipid and state producers Shell and BP, some up implicit 5%.

The Competition and Markets Authority has launched an probe into Intercontinental Hotels, Hilton and Marriott implicit suspected sharing of delicate commercialized accusation done a information provider.