Key facts
- The FTSE 100 is predicted to open higher on Tuesday.
- US Treasury Secretary Scott Bessent threatened new sanctions against Iran.
- Brent crude oil prices dropped over two percent to below $92 per barrel.
- BP shares declined, impacting the FTSE 100's performance.
- Diageo, LSEG, and Airtel Africa shares rose significantly.
The FTSE 100 is poised for a slight increase on Tuesday morning, according to futures data from IG. This follows a mixed performance on Monday, where the blue-chip index closed 0.4% higher at 10,854.32, while the FTSE 250 saw a slight dip and the AIM All-Share gained 0.3%.
Investors are reacting to statements from US Treasury Secretary Scott Bessent, who indicated potential new economic sanctions against Iran and countries that continue to trade with it. Despite expectations of an 'economic D-Day,' Bessent stopped short of immediate penalties, instead stating the US has broadened the definition of 'Iran-related conduct' that could be subject to future sanctions. He emphasized a preference for quiet diplomacy.
The threat of sanctions has impacted oil markets, with Brent crude, the international benchmark, falling over two percent to just below $92 per barrel on Monday. Major oil company BP was among the FTSE 100's biggest fallers, losing nearly three percent, while Diageo, LSEG, and Airtel Africa were notable risers.
Susannah Streeter, chief investment strategist at Wealth Club, commented that sanctions are the US's latest weapon in its efforts to increase oil flow from the region.