FTSE 100 Falls as Geopolitical Uncertainty Weighs on Markets
British equities moved lower on Tuesday, with investor sentiment caught between cautious optimism over potential U.S.-Iran peace talks and lingering uncertainty ahead of a key ceasefire deadline.
The FTSE 100 declined 1.1%, while Germany’s DAX dropped 0.9% and France’s CAC 40 also fell 1.1%. Meanwhile, sterling weakened slightly, with GBP/USD down 0.2% to 1.3511.
US-Iran Talks Offer Limited Support
Market sentiment received some support from reports that U.S. Vice President JD Vance may travel to Islamabad for a second round of nuclear negotiations with Iran. However, uncertainty remains as Tehran has not confirmed its participation.
Iran’s parliamentary speaker also signaled resistance, stating that negotiations would be “unacceptable under the shadow of threats,” highlighting ongoing diplomatic tensions.
Ceasefire Deadline Keeps Investors Cautious
The fragile ceasefire, set to expire on Wednesday, continues to hang in the balance. President Donald Trump has indicated he does not intend to extend the truce, adding to market uncertainty.
Oil Market and Energy Crisis in Focus
Oil prices edged lower, with Brent crude slipping as traders balanced diplomatic hopes against supply adjustments. Gulf producers have reportedly begun rerouting exports through alternative terminals, easing immediate supply concerns.
Despite this, the Strait of Hormuz remains effectively closed, leaving approximately 20,000 seafarers and 2,000 vessels stranded since the conflict began in late February. The International Energy Agency has described the situation as the most severe energy crisis in history.
UK Stocks: Key Corporate Developments
Several UK-listed companies were in focus during the session:
British Land raised its FY2027 earnings per share outlook to at least 30.5p, supported by strong office leasing demand, particularly from AI-driven tenants. The company reported higher profits and rental growth, with occupancy levels nearing capacity.
Capital Limited delivered record first-quarter revenue, driven by expansion across mining, drilling, and laboratory services. The company maintained its full-year guidance, supported by new contracts and operational growth.
Associated British Foods announced plans to separate its Primark retail division from its food business, with both entities expected to be listed independently in London. The group also reported a year-on-year decline in interim pre-tax profit.
Crest Nicholson Holdings significantly lowered its full-year earnings outlook to between £5 million and £15 million, compared to a previous consensus of £43.7 million. The company cited weaker macroeconomic conditions, softer demand, and persistently high interest rates, sending its shares sharply lower.
