FTSE 100 Live: Shares sink to three-month low after Trump's Hormuz warning

Watching the Iranian struggle headlines implicit the play has been "exhausting", says macro expert Jim Reid astatine Deutsche Bank.

He said the temper improved precocious connected Friday nighttime erstwhile Trump said helium was considering "winding down" military operations and suggested that work for policing the Strait of Hormuz would beryllium transferred to different countries.

However, Trump published a societal media station precocious connected Saturday that Iran indispensable "fully open, without threat" the Strait wrong 48 hours "from this nonstop constituent successful time", informing that nonaccomplishment to bash truthful would effect successful the US "obliterating" Iran’s powerfulness plants.

Iran’s effect was that it would people "all energy, accusation technology, and desalination infrastructure belonging to the US and the Israeli authorities successful the region" if its substance and vigor infrastructure were to beryllium attacked, portion Israel’s rhetoric besides continues to thin toward further escalation.

"Taken astatine look value," says Reid, "this makes 11.44pm GMT contiguous (7.44pm ET) a perchance pivotal moment, unless it is overtaken by further headlines successful the interim.

"One happening to ticker mightiness beryllium US Treasury yields. On Friday they climbed +13bps to 4.38%, the highest since July and are up different +3bps this morning. The US medication appeared to amusement immoderate sensitivity to this benchmark aft Liberation Day and astir the Greenland issue. So if yields bash go much unanchored that could power the magnitude of the mission."

The FTSE 100 plummeted 150 points to 9,768 in archetypal trading astatine the commencement of the week. This is the lowest successful 3 months, down to levels seen successful mid-December.

Precious metals miners Endeavour and Fresnillo are astatine the beforehand of the retreat, some down astir 4% arsenic golden and metallic prices tumble. Copper miner Antofagasta is down 3.3% too.

They are followed by motor shaper Rolls-Royce, British Airways proprietor IAG and easyJet arsenic investors buckle up for a longer play of turbulence successful aerial question markets due to the Iran war, hiking substance prices and dampening demand.

A radical of fiscal stocks are besides depressed, with M&G, Standard Life, St James's Place and Prudential each 2.5%-3% lower.

It's precise quiescent successful presumption of FTSE 350 quality this morning.

FTSE 250-listed backstage hospitals relation Spire Healthcare has an RNS release, which was enactment retired precocious connected Friday that takeover talks with some Bridgepoint and Triton person ended, dashing hopes of the £1 billion-plus woody that had sent shares surging earlier that day.