London midday: Stocks down, oil prices gain as Trump threatens Hormuz blockade

(Sharecast News) - London stocks were still in the red by midday Monday as oil prices rose after Donald Trump threatened to blockade the Strait of Hormuz following failed peace talks with Iran.

The FTSE 100 was down 0.3% at 10,565.58, but off earlier lows and outperforming European peers, with the benchmark Stoxx 600 down a more pronounced 0.7%, as French and German markets suffered heavier losses.

At the same time, Brent crude was up 7.4% at $102.20 a barrel and West Texas Intermediate was 8% higher at $104.31.

US vice president JD Vance said on Sunday that the US delegation had put forward a "final and best offer" but Iran had "chosen not to accept" it. "The bad news is that we have not reached an agreement. And I think that's bad news for Iran much more than it's bad news for the US," he said.

Following 21 hours of negotiations, Vance said: "The simple fact is that we need to see an affirmative commitment that they will not seek a nuclear weapon, and they will not seek the tools that would enable them to quickly achieve a nuclear weapon."

There was no indication from either side what will happen after the 14-day ceasefire ends on 22 April.

News of the failed peace talks was followed by a threat from Donald Trump to blockade any and all ships trying to enter or exit the vital Strait of Hormuz. The US president said on Truth Social: "So, there you have it, the meeting went well, most points were agreed to, but the only point that really mattered, NUCLEAR, was not.

"Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz." Trump said the US was "locked and loaded" and its military "will finish up the little that is left of Iran".

The US Central Command said the blockage will begin at 10am ET on Monday (1500 BST).

Russ Mould, investment director at AJ Bell, said: "The failure of initial talks between the US and Iran cannot be counted as a huge eye-opener, but Donald Trump's threat to launch a US blockade of the Strait of Hormuz might not have been on the market's bingo card.

"Investors are trying to gauge whether a fragile ceasefire will hold, and they are waiting to see the next moves from Tehran and Washington. Against this backdrop, oil above $100 per barrel is no surprise and the longer it persists at this level, the greater the scars for the global economy.

"The stagflation word is being widely aired once again as geopolitical turmoil threatens to stymie international growth and stoke inflationary pressures."

Mould said the FTSE 100 was spared a larger drop thanks to heavyweight constituents BP and Shell making renewed progress on the latest move higher for energy prices.

"In what is becoming a familiar pattern, the losers in London included financial stocks, housebuilders and names with links to the aviation sector," he added.

In equity markets, airlines were under the cosh amid disappointment over the lack of a peace deal and concerns about higher fuel costs, with BA owner IAG, easyJet and Wizz Air all sharply lower.

Housebuilder Vistry slumped as it announced the appointment of company insider Adam Daniels chief executive. Daniels joined Countryside Partnerships, which Vistry acquired in 2022, in 2016, and has gone on to hold various roles across the business. He is currently executive chair of Vistry's Yorkshire, North Midlands and West division.

He replaces long-serving Greg Fitzgerald, who will now step down as executive chair and chief executive with immediate effect.

The housebuilding sector more broadly was under pressure, with Persimmon and Taylor Wimpey also weaker.

National Grid lost ground as it said trading remained in line with expectations but it now expects to see a net impact of roughly 1p per share to underlying earnings from costs linked to customer refunds and higherthanexpected storm costs in its US operations.

Primark owner AB Foods was kocked lower by a downgrade to 'underperform' from 'sector perform' at RBC Capital Markets, while WH Smith slid after a downgrade to 'sector perform' from 'outperform' by the same outfit.

On the upside, oil giants BP and Shell gushed higher in tandem with oil prices. BP was also in focus after agreeing to buy a 60% interest in three offshore exploration blocks in Namibia from Eco Atlantic Oil & Gas as part of its strategy to grow its upstream portfolio.

Market Movers

FTSE 100 (UKX) 10,565.58 -0.33%

FTSE 250 (MCX) 22,200.58 -0.67%

techMARK (TASX) 5,826.64 -0.23%

FTSE 100 - Risers

Admiral Group (ADM) 3,337.00p 2.21%

Metlen Energy & Metals (MTLN) 32.87p 1.89%

Shell (SHEL) 3,480.50p 1.80%

BP (BP.) 581.90p 1.53%

Pearson (PSON) 1,010.00p 1.25%

3i Group (III) 2,722.50p 1.19%

ICG (ICG) 1,695.00p 1.14%

The Sage Group (SGE) 826.40p 1.10%

Imperial Brands (IMB) 3,114.50p 0.96%

Tesco (TSCO) 490.55p 0.91%

FTSE 100 - Fallers

Associated British Foods (ABF) 1,861.00p -3.07%

International Consolidated Airlines Group SA (CDI) (IAG) 377.40p -2.83%

Burberry Group (BRBY) 1,132.40p -2.11%

Compass Group 11 (CPG) 27.07p -1.90%

Antofagasta (ANTO) 3,725.50p -1.81%

Barratt Redrow (BTRW) 258.10p -1.79%

Pershing Square Holdings Ltd NPV (PSH) 4,082.00p -1.78%

Fresnillo (FRES) 3,535.00p -1.78%

Rolls-Royce Holdings (RR.) 1,247.20p -1.77%

Standard Chartered (STAN) 1,703.20p -1.68%

FTSE 250 - Risers

Ithaca Energy (ITH) 257.40p 3.83%

Harbour Energy (HBR) 286.00p 3.10%

NCC Group (NCC) 118.40p 2.24%

Playtech (PTEC) 387.40p 1.73%

Partners Group Private Equity Limited. (EUR) (PEY) 8.74p 1.63%

AO World (AO.) 96.50p 1.47%

TP Icap Group (TCAP) 294.40p 1.45%

Syncona Limited NPV (SYNC) 88.00p 1.27%

JPMorgan Emerging Markets Dividend Income (JEMI) 187.00p 1.08%

AEP Plantations (AEP) 1,876.00p 1.08%

FTSE 250 - Fallers

Wickes Group (WIX) 213.00p -6.58%

Wizz Air Holdings (WIZZ) 929.50p -6.05%

Vistry Group (VTY) 324.80p -4.36%

Hays (HAS) 28.94p -4.10%

easyJet (EZJ) 371.30p -3.96%

Aston Martin Lagonda Global Holdings (AML) 40.64p -3.47%

RTW Biotech Opportunities Ltd (RTW) 2.03p -3.33%

Edinburgh Worldwide Inv Trust (EWI) 220.00p -3.30%

WH Smith (SMWH) 588.50p -3.29%

Carnival (CCL) 1,988.00p -3.15%