Key facts
- FTSE 100 futures suggest a 19-point drop at Monday's open.
- President Trump has paused strikes on Iran.
- Diplomatic efforts are underway to secure transit through the Strait of Hormuz.
- Brent crude oil prices fell to $90.98 per barrel.
- The FTSE 100 closed 0.6% higher on Monday.
FTSE 100 futures indicated a 19-point drop at Monday's market open, a reversal from earlier expectations of a rise. This shift comes amid fluctuating Middle East tensions and oil prices. Brent crude, the international benchmark, fell 6% to $90.98 per barrel after US President Donald Trump announced a pause in strikes on Iran while an Omani delegation leads talks to secure transit through the Strait of Hormuz. This drop in oil prices boosted global markets, with the FTSE 100 closing 0.6% higher on Monday. Wall Street also saw gains, with the Nasdaq up 1.1% and the Dow Jones Industrial Average up 1.2% in early trading. However, sliding chip stocks later brought the S&P back into negative territory. President Trump warned that the US would resume a 'very powerful' military operation against Iran if talks fail. Oil majors BP and Shell are expected to face further losses if oil prices continue to decline.