Market Overview

The FTSE 100 opened volatile on Monday, slipping 0.02% to a level of 7,xxx points as of 03:32 ET (07:32 GMT). The index underperformed its European peers, with Germany’s DAX gaining 1.31% and France’s CAC 40 up 1.0%. Sterling weakened 0.13% to $1.3466 against the U.S. dollar.

Oil Price Collapse and Energy Stock Impact

Overnight, Brent crude fell 4.8% to $83.69 per barrel and U.S. WTI dropped 5.9% to $79.66, marking a roughly 5% decline in global crude prices. The steep price drop hit energy equities hard: Shell (SHEL) declined 1.1%, BP (BP) fell 2.03%, Ithaca Energy (ITH) lost 2.6%, and Energean (ENOG) slipped 1.1%.

Geopolitical Context

The oil slide followed a Truth Social post by U.S. President Donald Trump announcing the cancellation of a planned military strike on Iran, contingent on the “immediate, complete and total” opening of the Strait of Hormuz and an end to Tehran’s nuclear programme. Trump later confirmed that diplomatic talks through intermediaries had begun that afternoon.

Qatar’s mediators submitted a revised draft to Iran on Saturday aimed at restoring traffic through the strait, and Iranian diplomats reportedly responded positively, according to the Wall Street Journal. Iran continues to demand transit fees for vessels using the waterway, a request strongly resisted by Washington. A tanker explosion was reported near the strait on Sunday. U.S. Central Command confirmed its naval blockade remained active, having redirected 35 commercial vessels, disabled two, and boarded two. Gulf allies remain divided: Saudi Arabia advocates de‑escalation, while the United Arab Emirates urges decisive military force, warning that Iran’s IRGC may launch pre‑emptive strikes without direct U.S. pressure.

Precious Metals and Currency

Gold futures rose 0.17% to $4,114 per ounce, with spot gold up 0.41% at $4,059.11 per ounce.

Corporate Developments

AstraZeneca (AZN) shares fell 5.95% – nearly 7% – after the Financial Times reported that the drugmaker had been in merger talks with Bristol Myers Squibb, though the discussions may not result in a deal.

In the airline sector, easyJet extended Castlelake’s deadline to decide on a firm takeover offer to 7 August, matching the timetable set by Apollo Global Management. The airline continues to provide due‑diligence access to both bidders after backing Apollo’s £5.7 billion proposal over Castlelake’s earlier £5.5 billion offer.

Summary of Key Figures

  • FTSE 100: –0.02% (as of 03:32 ET)
  • Brent crude: $83.69/barrel (‑4.8%)
  • WTI crude: $79.66/barrel (‑5.9%)
  • Shell: –1.1%
  • BP: –2.03%
  • Ithaca Energy: –2.6%
  • Energean: –1.1%
  • Gold futures: $4,114/oz (+0.17%)
  • Spot gold: $4,059.11/oz (+0.41%)
  • Sterling: $1.3466 (‑0.13%)
  • AstraZeneca: –5.95% (≈‑7%)
  • easyJet deadline extension: 7 August
  • Apollo offer: £5.7 bn; Castlelake offer: £5.5 bn