Key facts
- US President Donald Trump ordered strikes on Iranian military capabilities.
- The strikes were in response to a drone attack and followed reciprocal actions.
- Brent crude oil prices rose above $94 per barrel.
- The FTSE 100 is anticipated to open lower.
- Investor sentiment is negatively impacted by ongoing global factors and Middle East tensions.
The FTSE 100 index is poised for a lower opening as escalating geopolitical tensions between the United States and Iran drive oil prices higher. President Donald Trump announced that the U.S. had carried out "very hard" strikes on Iranian military surveillance capabilities, communications systems, and air defence sites, characterizing them as a "self-defence" action. These strikes followed a series of reciprocal actions between the two nations.
Trump stated that Iran had "taken too long to negotiate a deal" and would "pay the price." He indicated that the bombing, which began late Wednesday night, would cease shortly but threatened to resume if necessary. The ongoing animosity has sent Brent crude, the international oil benchmark, back above $94 per barrel.