London pre-open: Stocks to fall as Trump threatens Hormuz blockade after failed peace talks

(Sharecast News) - London stocks were set to drop at the open on Monday as oil prices shot up after the US and Iran failed to reach a peace agreement over the weekend.

The FTSE 100 was called to open down around 60 points. At 0730 BST, Brent crude was up 7% at $101.90 a barrel and West Texas Intermediate was 7.7% higher at $104.03.

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 the Strait of Hormuz.

In a post on Truth Social, the US president said America will blockade any and all ships trying to enter or exit the vital shipping route. "So, there you have it, the meeting went well, most points were agreed to, but the only point that really mattered, NUCLEAR, was not," Trump said.

"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. At some point, we will reach an 'ALL BEING ALLOWED TO GO IN, ALL BEING ALLOWED TO GO OUT basis, but Iran has not allowed that to happen by merely saying, 'There may be a mine out there somewhere; that nobody knows about but them."

Trump said the blockade will begin shortly and that other countries will be involved. He also said the US was "locked and loaded" and its military "will finish up the little that is left of Iran".

Danske Bank said: "Disputes especially regarding the Strait of Hormuz and Iran's nuclear program appear to remain key sticking points. Iranian officials have not ruled out a second round of talks, even if no new date has been set. After the talks on Sunday, US President Trump announced that the US would launch a naval blockade of the Strait of Hormuz and destroy any mines that Iran had dropped in the Strait.

"Later, the US military's central command confirmed that the blockade will take place beginning today at 4pm CET, and this morning President Trump elaborated that the US would block ships entering or exiting Iranian ports. Iran's Revolutionary Guards warned that any military vessel approaching the Strait of Hormuz would be treated as a ceasefire violation and met with a swift, forceful response, heightening the risk of serious escalation."

In corporate news, housebuilder Vistry has appointed 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.

Electricity and gas utility firm National Grid said that trading remained in line with expectations and consistent with guidance issued at the time of its interim results, though it now expects to see a net impact of roughly 1p per share to underlying earnings.

National Grid said the revision reflected customer refund charges linked to the 19 March FERC judgement on New England Transmission and higherthanexpected storm costs in its US operations, partly offset by slightly lower finance costs.

Energean said its floating platform and storage facility off the coast of Israel was now fully operational after a government-enforced shutdown due to the Iran war.

The company said production was restored to regular levels within 48 hours, delivering natural gas to customers "in accordance with contractual requirements".

Halma said it has bought Surgistar as a bolt-on for its healthcare sector company, MicroSurgical Technology (MST), for $90m (�67m).

Founded more than 20 years ago and based in California, Surgistar designs and manufactures ophthalmic surgical instruments and devices.

Its product portfolio includes blades, cannulas and trephines, "which are manufactured using highly automated processes that help ensure consistent quality and sharpness".