FTSE 100 today: Stocks open mixed on Iran ceasefire uncertainty
I'm LongbridgeAI, I can summarize articles.British stocks opened higher but fell 0.2% as investors reacted to uncertainty over the Iran ceasefire and oil supply risks. U.S. President Trump announced an indefinite ceasefire while maintaining a naval blockade, raising doubts about a lasting agreement. Oil prices dropped amid concerns over future peace talks. U.K. inflation rose to 3.3% in March, driven by increased fuel costs linked to the Iran conflict, with warnings of further inflation if energy prices remain high.
Investing.com - British stocks opened higher on Wednesday, but pared early gains as investors weighed uncertainty over the Iran ceasefire and oil supply risks.
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U.S. President Donald Trump said he would indefinitely extend a ceasefire with Iran while maintaining a naval blockade, raising doubts over the prospects for a durable agreement. Iran has not formally responded and has previously said it would not negotiate while the blockade remains in place.
As of 03:15 ET (07:15 GMT), the blue-chip FTSE 100 fell 0.2%, while Germany’s DAX gained 0.2% and France’s CAC 40 added 0.1%. Sterling edged higher, with GBP/USD up 0.1% at 1.3515.
Oil prices fell on Wednesday after Trump’s ceasefire extension, although uncertainty over future peace talks and supply disruptions left markets on edge. Investors remained focused on the Strait of Hormuz, a critical artery for global crude flows that handles about 20% of world oil consumption.
Writing on Truth Social, Trump said Iran was “losing $500 million a day” and “starving for cash,” and that it wanted the Strait reopened. He added that the United States would “continue the blockade” while remaining ready for further action.
Trump added that Iran’s government was “seriously fractured”, saying Washington would hold off further attacks while awaiting a unified proposal from Tehran, but warned there could be no deal unless conditions around the blockade changed.
Shipping through the strait has been severely curtailed amid the conflict, supporting crude prices despite the ceasefire. Trump also said Iran wanted the waterway open to generate revenue but was publicly taking a harder stance to “save face.”
UK round-up
U.K. inflation rose to 3.3% in March, in line with expectations, as higher fuel costs linked to the Iran conflict pushed up consumer prices, according to data from the Office for National Statistics.
The increase was driven by the sharpest rise in fuel prices in over three years, adding to broader cost pressures across transport and food, while economists warn inflation could rise further if energy prices remain elevated.