London close: Stocks sink to two-week low on Middle East caution, oil jumps late on

(Sharecast News) - Nervousness about the fragility of a ceasefire deal between the US and Iran sent UK stocks tumbling late on Tuesday afternoon to a two-week low, as another surge in oil prices dented risk appetite.

Oil prices jumped in the final hour of trade, with Brent crude up 2.7% at $98.10 a barrel and WTI crude climbing 4.3% to $93.50 a barrel by the close in London.

That was enough to send the FTSE 100, which was treading water for the morning session, down 1.1% to 10,498.09 by the end of play, its lowest finish since 7 April.

Uncertainty looms over peace talks between the US and Iran as Donald Trump said it was "highly unlikely" the current ceasefire would be extended. Trump told Bloomberg he would "not be rushed into making a bad deal. We've got all the time in the world".

"The Strait of Hormuz continues to be a key bargaining point, with recent escalations - including vessel seizures and renewed disruptions - underscoring the fragility of the situation," said Axel Rudolph, chief technical analyst at IG.

The ceasefire, agreed a fortnight ago, is due to end on Wednesday, and officials from both countries are slated to meet in Pakistan ahead of that to resume peace talks.

The US vice president JD Vance is set to lead the American delegation to Islamabad, though he has yet to leave Washington, while Iran has insisted that the US Navy needs to lift its blockade of the Strait of Hormuz first before it will attend.

Pakistan's information minister said that the country was still awaiting a formal response from Iran about whether a delegation would be sent to Islamabad. Attuallah Tarar said Pakistan was in "constant touch" with Tehran and has made "sincere efforts" to convince leaders to participate in the second round of talks.

"Ceasefire ends at 4:50am PST, 22 April. Decision from Iran to attend the talks before the end of two weeks ceasefire is critical," Tara posted on X.

On home shores, data from the Office for National Statistics showed that unemployment unexpectedly fell in February, while wage growth continued to slow. The unemployment rate in the three months to February was 4.9%, down from January's 5.2%, versus consensus expectations for no change.

AB Foods slumps; British Land rallies

Associated British Foods slumped as it reported a 19% drop in adjusted first-half profits and unveiled plans to demerge its Primark retail clothing business from its food operations, as it warned of tougher consumer markets ahead due to the US-Israeli war on Iran. Primark provides more than half of the conglomerate's profit.

British Land rallied after boosting annual guidance following a strong end to the year which saw earnings come in ahead of forecasts. Berenberg, which has a 'buy' rating on the stock, said: "Strong occupational fundamentals continue to underpin rental growth and valuations."

Experian gained as it said that Adam Crozier would join the board as a non-executive director and chair designate on 12 May. Crozier, who currently serves as chair of BT and Kantar, will succeed Mike Rogers as chairman following the conclusion of Experian's annual general meeting on 22 July.

On the FTSE 250, renewables stocks BluefieldSolar Income Fund, TRIG, Greencoat UK Wind, and Foresight Environmental Infrastructure were all higher after the UK government said electricity generators will face higher windfall taxes as it pushes them to accept fixed-price contracts in an accelerated effort to protect consumers from gas market shocks such as the Iran war.

Market Movers

FTSE 100 (UKX) 10,498.09 -1.05%

FTSE 250 (MCX) 22,978.89 0.17%

techMARK (TASX) 5,941.94 -1.10%

FTSE 100 - Risers

Compass Group 11 (CPG) 29.25p 2.78%

Relx plc (REL) 2,779.00p 2.70%

SSE (SSE) 2,583.50p 2.66%

London Stock Exchange Group (LSEG) 9,650.00p 2.53%

Experian (EXPN) 2,914.00p 2.34%

The Sage Group (SGE) 916.60p 2.23%

Standard Life (SDLF) 776.40p 1.97%

Burberry Group (BRBY) 1,192.20p 1.34%

Centrica (CNA) 207.00p 1.32%

Pearson (PSON) 1,091.00p 1.30%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 1,180.40p -6.50%

BAE Systems (BA.) 2,145.00p -4.22%

Coca-Cola HBC AG (CDI) (CCH) 4,205.00p -4.10%

Reckitt Benckiser Group (RKT) 4,918.00p -3.46%

Melrose Industries (MRO) 532.40p -3.45%

Smith & Nephew (SN.) 1,221.00p -3.29%

GSK (GSK) 2,082.00p -2.89%

Vodafone Group (VOD) 113.35p -2.79%

Associated British Foods (ABF) 1,834.50p -2.68%

British American Tobacco (BATS) 4,111.00p -2.68%

FTSE 250 - Risers

Bluefield Solar Income Fund Limited (BSIF) 81.70p 6.24%

Ocado Group (OCDO) 218.10p 4.76%

Kainos Group (KNOS) 913.50p 3.71%

The Renewables Infrastructure Group Limited (TRIG) 66.55p 3.58%

Trustpilot Group (TRST) 261.20p 3.49%

Foresight Environmental Infrastructure Limited (FGEN) 71.60p 3.17%

Ceres Power Holdings (CWR) 432.80p 3.15%

Discoverie Group (DSCV) 659.00p 3.13%

Renishaw (RSW) 4,562.00p 3.12%

Greencoat UK Wind (UKW) 98.72p 2.83%

FTSE 250 - Fallers

Pan African Resources (PAF) 154.60p -4.76%

Carnival (CCL) 2,038.00p -4.18%

Endeavour Mining (EDV) 4,737.00p -4.11%

Genuit Group (GEN) 294.80p -3.91%

Hochschild Mining (HOC) 657.50p -3.66%

Wizz Air Holdings (WIZZ) 954.00p -3.39%

Hays (HAS) 33.20p -3.21%

Raspberry PI Holdings (RPI) 590.00p -3.04%

Baltic Classifieds Group (BCG) 200.60p -2.90%

QinetiQ Group (QQ.) 464.80p -2.80%