London midday: FTSE flat as Iran deadline looms

(Sharecast News) - London stocks were steady by midday on Tuesday, with investors erring on the side of caution as the deadline for Trump's ultimatum to Iran loomed, after the US president doubled down on his threat to destroy the country's energy and transport infrastructure.

The FTSE 100 was flat at 10,433.39. Brent crude was up 0.2% at $109.94 a barrel and West Texas Intermediate was 1.1% higher at $113.69.

Speaking at a White House press conference on Monday, Trump said Iran could be taken out by the US in "one night and that night could be tomorrow night" if it does not make a deal to end the conflict and reopen the vital strait of Hormuz.

The US president was referring to the deadline he has given Iran to reopen the strait of Hormuz, through which around 20% of the world's oil supply travels. If Iran does not reopen the strait by 20:00 Eastern Time on Tuesday (01:00 BST on Wednesday) Trump has threatened major attacks against the country's energy and transport infrastructure.

In response to a question about whether he was winding down the war or escalating it, Trump reaffirmed his threat to take out Iran's energy infrastructure. "I can't tell you. I don't know. It depends what they do," he said. "This is a critical period.

"They have until tomorrow and we'll see what happens. I can tell you they're negotiating we think in good faith. We're going to find out. We're getting the help of some incredible countries that want this to be ended because it affects them also."

One reporter asked if in order for Iran to successfully meet the US deadline on Tuesday they have to make a deal, open the strait or both. Trump said: "We have to have a deal that's acceptable to me. And part of that deal is going to be we want free traffic of oil and everything else."

Trump went on to threaten the decimation of every bridge in Iran "by 12 o'clock tomorrow night" and said that every power plant "will be out of business, burning, exploding and never to be used again".

"I mean complete demolition by 12 o'clock and it will happen over a period of four hours if we want it to," he said.

Investors were also mulling a report by Axios over the weekend suggesting the US and Iran were discussing terms for a 45-day ceasefire, although prospects for an agreement were understood to be slim.

Dan Coatsworth, head of markets at AJ Bell, said: "Markets were steady with investors largely non-committal as they await the apparent cliff-edge deadline imposed by the Trump administration.

"President Trump's threats of widespread strikes on Iran if the Strait of Hormuz is not reopened by the early hours of tomorrow morning UK time, if taken at face value, create the conditions for a binary set of outcomes.

"Either there is a climbdown on the part of Washington or Tehran, which could prompt a major rally in equities and easing of energy prices, or a major escalation with all the implications that might have for financial markets.

"An alternative scenario is that the deadline is extended, and the markets face another uneasy period of trying to gauge the latest mood music in the US and Iran."

On home shores, a survey showed that activity in the services sector hit its lowest level in March in 11 months, while costs surged amid the war in the Middle East.

The S&P Global services PMI business activity index fell to 50.5 from 53.9 in February, hitting the lowest level since April 2025. It was below the flash reading of 51.2 but above the 50.0 mark that separates contraction from expansion.

Input price inflation rose to the highest since April 2025 due to a surge in fuel costs, while business optimism fell to its lowest for nine months. According to S&P, many firms said the conflict in the Middle East had weighed on growth in March.

In equity markets, shares in Scottish Mortgage Investment Trust rallied after Reuters reported that SpaceX - in which it has a significant holding - outlined details of its IPO at a meeting with its team of bankers on Monday night. According to Reuters, SpaceX told them it plans to earmark a large portion of shares for retail investors and will host 1,500 of them at an event in June following the IPO roadshow launch.

Bill Ackman's Pershing Square was in focus after offering to buy Universal Music Group for around �55bn.

WPP surged to the top of the FTSE 250 index, although there was no obvious reason for the move.

Fund administration services firm JTC was little changed as it reported a 25% jump in full-year revenues to �381.9m and a 22.4% increase in underlying earnings.

Elsewhere, precision engineering group Hunting rose after saying it had won $63.5m in orders to deliver its titanium stress joint products for a new offshore oil development in Guyana.

Ninety One tanked after Bank of America downgraded the shares to 'neutral' from 'buy' and cut the price target to 260p from 280p, citing lower expected market returns.