13th Apr 2026 12:13
(Alliance News) - Stock prices in London were lower at midday Monday, as rising geopolitical tensions and a renewed surge in oil prices unsettled investors following the collapse of US-Iran peace talks.
The FTSE 100 index was down 42.55 points, 0.4%, at 10,558.48. The FTSE 250 was down 154.24 points, 0.7%, at 22,196.78, and the AIM all-share was down 1.30 points, 0.2%, at 776.18.
The Cboe UK 100 was down 0.4% at 1,053.04, the Cboe UK 250 was down 0.6% at 19,311.40, and the Cboe small companies was down 0.2% at 17,650.87.
In European equities on Monday, the CAC 40 in Paris was down 0.9%, while the DAX 40 in Frankfurt was down 1.0%.
Markets were digesting US President Donald Trump's announcement that a US blockade of Iranian ports would begin on Monday at 1000 ET, 1500 BST. The move marks an escalation following weekend peace talks between Washington and Tehran that ended without agreement.
US Central Command said it would "not impede" ships sailing through the Strait of Hormuz to or from other countries. Despite that assurance, oil prices jumped back above USD100 a barrel. Brent was quoted at USD102.07 a barrel early Monday in London, up from USD96.14 late Friday.
Iran's parliament speaker said the country would not "surrender under threats", while the Islamic Revolutionary Guard Corps warned that military vessels approaching the strait would be "dealt with severely".
In the UK, Prime Minister Keir Starmer told the BBC that Britain is "not supporting" the blockade and is instead focused on reopening the Strait of Hormuz and bringing energy prices back down.
The latest flare-up comes after weekend negotiations failed to produce a ceasefire. Trump said talks collapsed because Iran would not "give up its nuclear ambitions", while Iran's foreign minister accused Washington of "shifting goalposts".
"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," said AJ Bell investment director Russ Mould.
"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 USD100 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."
Currency markets reflected a cautious tone. The pound was quoted at USD1.3428 at midday Monday, lower compared to USD1.3472 on Friday. Against the euro, sterling rose to EUR1.1489 from EUR1.1482 a day prior. The euro stood at USD1.1688, lower against USD1.1735. Against the yen, the dollar was trading at JPY159.70, higher compared to JPY159.10.
In London, oil majors were among the strongest performers in the FTSE 100, benefiting from higher crude prices. BP rose 1.2%, and Shell gained 1.5%.
BP also announced on Monday that it is buying a 60% interest in offshore Namibian licences from Eco Atlantic Oil & Gas, which jumped 9.5%.
The London-based fuel major will become operator of three blocks in Namibia's Walvis Basin, known as PEL97, PEL99 and PEL100, or the Cooper, Guy and Tamar licences.
Eco Atlantic said the farmout agreement was signed on Friday, with a USD2.7 million one-time cash consideration payable upon completion.
The transaction remains subject to approval from the Namibian Ministry of Industries, Mines & Energy and the Upstream Petroleum Unit, as well as the Toronto Stock Exchange, where Eco Atlantic has its primary listing.
By contrast, airlines were under pressure from higher fuel costs. BA-owner International Consolidated Airlines Group fell 2.9%. In the FTSE 250, Wizz Air dropped 5.9%, and easyJet slid 4.0%.
Among smaller caps, Trellus Health surged 50% after renewing its licensing agreement with Pfizer Inc for patient support content. Pfizer will continue using Trellus's educational materials within an inflammatory bowel disease digital application, extending a partnership first signed in the second quarter of 2024.
t42 rose 36% after reporting strong 2025 growth driven by a surge in container-related sales. Revenue increased to USD6.1 million from USD4.2 million, with container-related sales up more than 250% year-on-year. Total comprehensive loss narrowed to USD576,000 from USD1.7 million, despite a higher cost of revenue.
The company also signed a distribution partnership with Relegen covering Australia and New Zealand to support product development and deployment in Australasia.
On the downside, Mothercare plunged 31% after reporting lower earnings and sales in financial 2026 amid ongoing Middle East uncertainty.
The Watford-based retailer, which specialises in products for newborn babies and children, said adjusted Ebitda fell to GBP1.3 million from GBP3.5 million, while worldwide retail sales by franchise partners declined 22% to GBP180 million.
Mothercare said the Middle East conflict had an impact of GBP100,000, citing continued uncertainty for franchise partners in the region. However, it described recent performance as "usefully resilient" ahead of financial 2027.
Across the Atlantic, US futures pointed to a weaker open. The Dow Jones Industrial Average was called down 0.5%, the S&P 500 index down 0.6%, and the Nasdaq Composite down 0.7%.
US Treasury yields edged higher, reflecting inflation concerns sparked by the instability in the Middle East. The yield on the US 10-year Treasury was quoted at 4.33%, widening from 4.30%. The yield on the US 30-year Treasury was quoted at 4.93%, widening from 4.90%.
In Germany, Chancellor Friedrich Merz announced that Berlin would slash fuel taxes as households grapple with the energy shock stemming from the Middle East war.
The announcement followed the renewed surge in oil prices after the collapse of US-Iran peace talks and Trump's decision to blockade the Strait of Hormuz.
Merz said the war "is the root cause of the problems we face in our own country" and stressed that Germany was doing all it could to help bring the conflict to an end.
Following talks between his CDU party and coalition partners, Merz said the government had decided to cut petrol and diesel taxes by around 17 euro cents for two months.
"This will very quickly improve the situation for drivers and businesses in the country, and above all for those who, mainly for professional reasons, spend a great deal of time on the road," he told a news conference in Berlin.
Fuel prices in Germany, as elsewhere, have risen sharply since the outbreak of the US-Israeli war against Iran at the end of February.
Gold was quoted at USD4,721.13 an ounce at midday, down from USD4,775.63 on Friday, as investors balanced haven demand against broader market volatility.
Still to come on Monday's economic calendar are US existing home sales.
By Eva Castanedo, Alliance News reporter
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