London’s market mood on Monday was basically “cautious, not panicking” — but the numbers still fell. The FTSE 100 posted modest losses as oil climbed back above $100 a barrel, with the US pressing ahead with a naval blockade of the Strait of Hormuz.
What really rattled investors wasn’t just the price of crude. It was the signal from Washington after weekend talks between the US and Iran broke down. US President Donald Trump announced he would blockade the key shipping route after vice president JD Vance left weekend negotiations with an Iranian delegation in Pakistan without a deal.
By the close, the FTSE 100 was down 17.57 points, 0.2%, at 10,582.96. The FTSE 250 ended down 74.13 points, 0.3%, at 22,276.89, while the AIM All-Share rose 4.83 points, 0.6%, to 782.31. So yeah, it wasn’t uniform—small-cap traders looked like they were willing to take some risk, or maybe just price things differently.
The US set a deadline of 2pm on Monday to begin a partial blockade of the Strait of Hormuz, through which a fifth of the world’s oil and gas passes. The US Central Command said the blockade will be enforced “impartially against vessels of all nations entering or departing Iranian ports and coastal areas,” including all Iranian ports on the Arabian Gulf and Gulf of Oman. The threat also lands in a context where Tehran has already effectively closed the Strait of Hormuz to oil and other traffic since the start of US-Israel strikes on Iran in late February.
In a way, everyone seems stuck between two stories. Misryoum newsroom reported that reopening the Strait of Hormuz remains the key requirement for reigniting a sustainable rally across risk assets. Misryoum editorial desk noted there’s also a conviction—rightly or wrongly—that the war could end relatively soon, because oil futures for later this year are priced well below current market prices. Analysts also pointed out that Brent hasn’t fully retraced to its earlier highs—trading at 101.95 dollars a barrel on Monday afternoon, up from 96.14 dollars at the time of the equities close in London on Friday, but still below the 111 dollars per barrel level seen before the ceasefire.
The impact spilled beyond the energy complex. In European trading, the CAC 40 in Paris closed down 0.3% and the DAX 40 in Frankfurt also ended down 0.3%. In New York, markets were mixed: the Dow Jones Industrial Average fell 0.6%, the S&P 500 was little changed, and the Nasdaq Composite gained 0.3%. One corporate headline in the US was Goldman Sachs, down 3.6% despite better-than-expected first quarter earnings—17.23 billion dollars in total net revenue, up 14% from 15.06 billion dollars a year prior.
Back in London, the market story turned granular fast. Associated British Foods fell 2.0% after a downgrade to “underperform” from “sector perform,” with further downside risk to Primark’s earnings. On the FTSE 250, Wickes sank 5.1% after a downgrade to “hold” from “buy.” RecruItment firm Hays slid 2.1% amid the uncertain economic outlook tied to the Middle East crisis, and ahead of a trading statement this week. Travel and consumer names also felt the pressure—easyJet down 2.4%, Wizz Air down 5.4%, Carnival off 2.6%, and WH Smith down 3.2%. There was even a noticeable whiff of the day’s mood in the trading floor—someone’s burnt coffee smell drifting past the screens—while Essentra tumbled 11% on Deutsche Bank’s downgrade to “hold” and Mothercare plunged 21% after reporting lower earnings and sales in financial 2026 amid ongoing Middle East uncertainty.
Tuesday’s global economic calendar includes China trade figures overnight and US producer price inflation data. Markets are basically watching whether the next headline tightens the noose around risk—or loosens it again. Misryoum newsroom reported the US deadline sits there like a drumbeat, and honestly… that’s the kind of thing investors tend to listen for, even when they say they aren’t.
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