Business
FTSE 100 edges lower amid new US-Iran uncertainty
The FTSE 100 posted modest falls on Monday as the oil price topped 100 dollars per barrel once more as the US pressed ahead with a naval blockade of the Strait of Hormuz.
US President Donald Trump announced he would blockade the key shipping route after vice president JD Vance left weekend negotiations with an Iranian delegation in Pakistan without a deal.
The FTSE 100 closed down 17.57 points, 0.2%, at 10,582.96. The FTSE 250 ended down 74.13 points, 0.3%, at 22,276.89, but the AIM All-Share rose 4.83 points, 0.6%, to 782.31.
News of the breakdown in talks between the US and Iran dealt a blow to those hoping for an end to the conflict, sending oil prices higher once more.
The US set a deadline of 2pm on Monday to begin a partial blockade of the Strait of Hormuz, through which a fifth of the world’s oil and gas passes.
“The blockade will be enforced impartially against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman,” the US Central Command posted on X.
The threat comes as Tehran has already effectively closed the Strait of Hormuz to oil and other traffic since the start of US-Israel strikes on Iran in late February.
“Reopening the Strait of Hormuz remains the key requirement for reigniting a sustainable rally across risk assets,” said David Morrison, an analyst at Trade Nation.
“Yet there’s also a conviction, rightly or wrongly, that the war will end relatively soon,” he said, noting that oil futures contracts for deliveries later this year are currently priced well below current market prices.
“As far as oil traders are concerned, this war may be in its seventh week, but it should be resolved by summer,” Mr Morrison said.
Brent oil traded higher at 101.95 dollars a barrel on Monday afternoon, up from 96.14 dollars at the time of the equities close in London on Friday.
“Although oil prices have jumped back above the 100 dollars level, the fact that they have not returned to pre-ceasefire highs above 111 dollars per barrel for Brent has tempered the sell-off in risky assets at the start of this week. The peace talks between Iran and the US at the weekend was not a single event, but should be viewed as a process, and there are hopes that more talks will continue,” observed Kathleen Brooks, research director at XTB.
In European equities on Monday, the CAC 40 in Paris closed down 0.3%, as did the DAX 40 in Frankfurt.
In New York, markets were mixed. The Dow Jones Industrial Average was down 0.6%, the S&P 500 was little changed, and the Nasdaq Composite was up 0.3%.
Shares in Goldman Sachs fell 3.6% despite better-than-expected first quarter earnings.
Kicking off a busy week of US banking results, Goldman reported 17.23 billion dollars in total net revenue, up 14% from 15.06 billion dollars the year prior.
But Citigroup analyst Keith Horowitz said an impressive equities performance was offset by a large CET1 capital ratio decline and a weak contribution from its Fixed Income, Currencies & Commodities division.
The yield on the US 10-year Treasury was at 4.33% on Monday, widened from 4.30% on Friday. The yield on the US 30-year Treasury stretched to 4.93% on Monday from 4.90%.
The pound fell to 1.3451 dollars on Monday afternoon from 1.3472 dollars on Friday. Against the euro, sterling rose to 1.1492 euros from 1.1482 euros.
In London, Associated British Foods fell 2.0% as RBC Capital Markets downgraded to ‘underperform’ from ‘sector perform’ seeing further downside risk to consensus earnings forecasts, mainly due to pressure on its largest business, retailer Primark.
On the FTSE 250, Wickes was knocked back 5.1% after a downgrade to ‘hold’ from ‘buy’ by Panmure Liberum which thinks consensus forecasts are too ambitious.
While recruiter Hays fell 2.1% amid the uncertain economic outlook amid the Middle East crisis, and ahead of a trading statement this week.
The US-Iran war weighed on travel operators with budget airlines easyJet and Wizz Air down 2.4% and 5.4%, while cruise operator Carnival lost 2.6% and travel retailer WH Smith declined 3.2%.
Meanwhile, Essentra tumbled 11% as Deutsche Bank downgraded to ‘hold’ from ‘buy’ believing there is a “meaningful risk” that input cost inflation hits demand, particularly in the Europe, Middle East & Africa region.
This would “once again” defer Essentra’s recovery, the bank said.
Elsewhere, Mothercare plunged 21% after reporting lower earnings and sales in financial 2026 amid ongoing Middle East uncertainty.
The Watford-based retailer, which specialises in products for newborn babies and children, said adjusted Ebitda fell to £1.3 million from £3.5 million, while worldwide retail sales by franchise partners declined 22% to £180 million.
Mothercare said the Middle East conflict had an impact of £100,000, citing continued uncertainty for franchise partners in the region. However, it described the recent performance as “usefully resilient” ahead of financial 2027.
Gold traded at 4,714.40 dollars an ounce on Monday, down from 4,775.63 dollars at the same time on Friday.
The biggest risers on the FTSE 100 were Metlen Energy & Metals, up 1.04p at 33.32p, Sage Group, up 23.40p at 841.00p, 3i Group, up 68.50p at 2,759.00p, London Stock Exchange, up 222.00p at 9,190.00p and BAE Systems, up 51.50p at 2,245.50p.
The biggest fallers on the FTSE 100 were United Utilities, down 32.00p at 1,362.00p, Severn Trent, down 71.00p at 3,184.00p, National Grid, down 27.80p at 1,319.80p, Marks & Spencer, down 7.50p at 357.40p and Fresnillo, down 72.00p at 3,524.00p.
Tuesday’s global economic calendar has China trade figures overnight and US producer price inflation data.
Contributed by Alliance News
Business
India-US trade deal back in focus: Indian delegation to visit Washington next week for talks – The Times of India
India-US trade deal update: Months after India and the US announced an interim trade agreement that reduces tariffs on India to 18%, an official Indian delegation is set to travel to Washington next week for discussions with US authorities, a government source said on Wednesday.According to a PTI source, the visit is scheduled for next week. The agreement had originally been expected to be signed in March, but developments in the Donald Trump tariff regime following a ruling by the Supreme Court of the United States have changed the circumstances.
In this light, the talks between trade representatives of India and the United States are seen as particularly significant. Officials had earlier indicated that the deal would be concluded only after clarity emerges on the revised tariff structure in the United States.In February, the two countries had announced that they had finalised the framework for the first phase of their bilateral trade pact. As part of this understanding, the US had agreed to bring down tariffs on Indian goods to 18 per cent.However, the tariff environment in the US shifted after the court struck down sweeping reciprocal tariffs introduced by President Donald Trump. Subsequently, the US administration imposed a uniform 10 per cent tariff on imports from all countries for a period of 150 days starting February 24.Amid these changes, a planned meeting between the chief negotiators from both sides was deferred last month. The two countries had been scheduled to meet in February to finalise the legal text of the agreement.At the time the framework was agreed, India enjoyed a relative advantage over competing nations. That edge has since narrowed, as all US trading partners are now subject to the same 10 per cent tariff.The upcoming talks will also be crucial in the context of two ongoing investigations initiated by the Office of the United States Trade Representative under Section 301.On March 12, the USTR launched a probe covering around 60 economies, including India and China. The investigation aims to assess whether policies or practices related to the enforcement of bans on goods produced using forced labour are unreasonable or discriminatory, or whether they restrict US trade.A day earlier, on March 11, the USTR had initiated another Section 301 investigation focusing on the policies and industrial practices of 16 economies, including India and China.
Ads for supermarkets Lidl and Iceland have become the first to be banned under new rules governing “less healthy” food and drink.
The rules, which came into effect at the beginning of the year, are part of Government efforts to tackle childhood obesity by preventing ads for food and drink that is high in fat, salt and sugar (HFSS) appearing on television between 5.30am and 9pm, and online at any time.
The new ban applies to products that fall within 13 categories considered to play the most significant role in childhood obesity, including soft drinks, chocolates and sweets, pizzas and ice creams, but also breakfast cereals and porridges, sweetened bread products, and main meals and sandwiches.
Products that fall into these categories are than also assessed as to whether they are “less healthy” based on a scoring tool that considers their nutrient levels and whether products are high in saturated fat, salt or sugar.
Only products that meet both of the two criteria are included in the restrictions.
The Advertising Standards Authority (ASA) said an Instagram post for Lidl Northern Ireland by influencer Emma Kearney featured the grocer’s cheese pretzel, which was not categorised as HFSS and therefore did not fall within the restrictions, and its Pain Suisse product, which was classified as both HFSS and a sweetened bread product and was therefore banned under the new rules.
Lidl said the ad had been removed and they had liaised with their marketing agency to ensure that all future ads complied with the new rules.
In a separate case, Iceland confirmed that two ads included a tub of Swizzles Sweet Treats, a packet of Chupa Chups Laces, a bag of Chooee Disco Stix and a bag of Haribo Elf Surprises, which were all classified as HFSS.
They also provided nutrient profile information from their supplier which confirmed that Pringles Sour Cream & Onion crisps, also included in the ads, were not an HFSS product.
Iceland’s Luxury Aberdeen Angus Beef Roasting Joint, Vegetable Spring Rolls, Sticky Chicken Skewers and Lurpak Spreadable Butter, which were also included in the ads, did not fall within the new restrictions.
The ASA did not uphold a complaint against an Instagram post by influencer John Fisher – known to many as Big John – which featured him promoting menu items at a new German Doner Kebab outlet because the specific items shown in the ad were not classified as less healthy foods.
The watchdog also cleared a TV ad for On The Beach promoting free airport lounge access which featured a boy approaching a buffet and taking a chocolate ring doughnut.
The ASA said viewers would see the ad as showing an example of what was available in the lounge rather than for the doughnut itself, meaning it did not break the rules.
ASA chief executive Guy Parker said: “As the ad regulator, our role is to remain impartial and independent, making sure our new LHF rules, which reflect the law, are applied fairly and consistently.
“These initial rulings are an important step in building a clearer picture of how the rules are applied in reality.
“We’ll be continuing to play our role in administering and enforcing them, including by using tech-assisted proactive monitoring.”
An Iceland spokesman said: “The products highlighted were part of a bigger range in the specific display ad and were featured due to a technical fault with a data feed from a third-party supplier.
“As the ASA has pointed out, these initial rulings are helping to build a clearer picture of how the new rules are applied, following the initial confusion and debate around the regulations.”
At a meeting of the local authority’s executive on Tuesday, MacBeath said the scheme aimed to move beyond emergency aid by helping families become more financially “resilient”, offering advice on managing money, accessing benefits, reducing debt and finding work.
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India-US trade deal back in focus: Indian delegation to visit Washington next week for talks – The Times of India
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