Stocks are opening the week in the red as oil jumps above $100 a barrel after Trump announced a blockade of the Strait of Hormuz.
The relief seen across markets last week after the announcement of peace talks has vanished after talks broke down over the weekend.
Now, the US President has threatened to block the key Gulf waterway. In a Truth Social post, Trump said: ‘Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!’ and ‘our Military will finish up the little that is left of Iran!’
The blockade, which will begin at 3pm BST, will target ships entering and exiting Iranian ports.
Brent crude jumped around 8 per cent to above $100 a barrel amid fears of a prolonged conflict and its impact on fuel supply. It is currently hovering at around $102 a barrel this morning after ending last week at around $95.
Asian markets fell with Japan’s Nikkei down 0.63 per cent, while Hong Kong’s Hang Seng Index fell 1.21 per cent. The FTSE 100 is down over 50 points to 10,543.
Sharp rise in unemployed looking for work
The number of people looking for work has risen sharply after a wave of redundancies and ‘muted’ job market.
A report by auditor KPMG and the Recruitment & Employment Confederation (REC) found ‘demand for workers continued to weaken’ last month.
Experts warned the conflict in the Middle East could delay any recovery – fuelling fears of further rises in unemployment from the current five-year high of 5.2 per cent.
Wise nears completion of US listing
Money transfer firm Wise has said it is on track to move its primary listing from London to Nasdaq this quarter after announcing its plans last June.
It came as the fintech beat expectations in the fourth quarter, with underlying income increasing 24 per cent to £435.3million.
In a statement, Wise said: ‘We believe that the addition of a primary US listing would bring a number of strategic and capital markets benefits to Wise and its owners, including greater visibility in the United States, the biggest market opportunity for our products today, and better access to the world’s deepest and most liquid capital market.’
Vistry shares fall on new CEO appointment
Shares in Vistry fell as much as 3.5 per cent at the open following the appointment of a new CEO.
The housebuilder said Adam Daniels, already a member of Vistry’s executive team, will take the helm immediately. Rob Woodward will take up the role of chair.
It comes just weeks after the FTSE 250 firm said Greg Fitzgerald will retire next year, after which the chair and CEO roles will be separated.
Oli Creasey, head of property research at Quilter Cheviot, said: ‘While the transition of both roles has been well-flagged, the timeline comes as a surprise, with the search for the new CEO in particular guided to take until March 2027 at the latest.
While investors may be reassured to see the transition not drag on, and see a well-respected internal candidate take on the CEO role, they may also be confused as to why guidance was provided just over a month ago that the search might take up to a year to complete, especially as Vistry now tell us that a “multi-year CEO succession plan” has already concluded.’
The sooner-than-expected transition follows a difficult period for the builder, which warned last month that profit margins would remain under pressure as higher costs, planning delays and muted demand weigh on the market.
FTSE opens in the red
The FTSE 100 has opened down 60 points, or 0.58 per cent, at 10,536, as brent crude sits at $101.28 a barrel.
Richard Hunter, head of markets at Interactive Investor said: ‘Inflationary concerns are therefore back on the table, and other commodities such as fertiliser also rose on supply concerns. It now remains to be seen whether the US President’s latest threats will be enforced, with the muted market reaction thus far implying that it could turn out to be a negotiation tactic.’
Associated British Foods is down 2.29 per cent following a broker downgrade, while miners Fresnillo and Endeavour Mining slipped as gold tracked lower.
Hunter added: ‘As with most global peers, the main UK indices will remain rangebound until there is some evidence of a sustained solution to the Middle Eastern impasse.’