Market Overview
As of 03:25 ET (07:25 GMT) the FTSE 100 whipsawed through the session and closed marginally up 0.09%. Germany’s DAX fell 0.65% and France’s CAC 40 edged up 0.20%. The pound slipped 0.05% against the dollar, trading at $1.3188.
Drivers of Volatility
The market swing reflected a sharp global sell‑off in technology and chip stocks combined with easing geopolitical risk in the Strait of Hormuz. Tanker traffic through the strait is gradually normalising as Iran‑Israel hostilities cool, and vessels that were stranded are preparing to move.
US Political and Diplomatic Actions
U.S. Secretary of State Marco Rubio rejected suggestions that Iran could impose tolls on Hormuz shipping and noted that Iran and Oman will jointly examine the strait’s future administration. The U.S. Senate passed a non‑binding resolution directing President Donald Trump to withdraw U.S. forces from the Iran conflict. Trump responded on Truth Social, calling the resolution “poorly timed and meaningless,” and criticised the four Republican senators who voted with Democrats. In a separate post he claimed Iran had “fully and completely agreed to highest level Nuclear inspections” and that he had “agreed to allow the Hormuz Strait to remain OPEN, with no further Naval Blockade,” while noting ships would stay in place in case reinstatement was needed. Iranian President Pezeshkian countered that Iran’s missiles are not part of any U.S. agreement and will never be.
Regional Diplomatic Tour
Rubio is touring Gulf states this week to sell the deal to the United Arab Emirates, Kuwait and Bahrain, attempting to separate it from parallel Israel‑Lebanon talks, which the U.S. ambassador said are “heading toward a train wreck.” Hezbollah accused Israel of violating the cease‑fire after strikes killed two people in Lebanon on Tuesday.
Energy and Commodity Movements
Brent crude fell 1.22% to $75.86 per barrel and U.S. WTI dropped 1.35% to $72.22 per barrel. Gold futures slid 1.14% to $4,102 per ounce, while spot gold fell 0.61% to $4,084 per ounce. President Trump separately accused oil majors of “gouging” drivers and told the Department of Justice to investigate.
LNG Outlook and Humanitarian Effort
QatarEnergy expects normal LNG output to resume within “a few weeks,” with force‑majeure to be lifted once conditions are safe. Qatar supplies roughly 20% of global LNG. The United Nations is planning to evacuate more than 11,000 stranded seafarers from the Gulf.
UK Corporate Updates
Berkeley Group reported annual pretax profit below analyst expectations, citing higher costs, slower construction activity and cautious buyers that pressured margins. Segro rejected an all‑share takeover proposal from Prologis that valued Segro at about £12.6 billion. B&M announced the appointment of Atheeq Akbar, formerly of Asda, as CFO‑designate, with his start date set for February 2027.