FTSE 100 today is set to open lower as Brent crude moved above $97 per barrel on Monday morning after new US and Iran strikes sharpened oil-supply fears. For UK investors, the immediate pressure point is energy-linked pricing and the wider hit to shipping routes that move crude and liquefied gas.
Brent crude above $97
Brent crude climbed above $97 per barrel after the US targeted three Iranian oil tankers over the weekend in retaliation for ballistic missile attacks on US Navy warships. Tehran hit back and attacked oil tankers and other vessels linked to the US, turning a weekend escalation into a price move that traders carried into Monday.
20 per cent of the world’s oil and liquefied natural gas supplies previously moved through the Strait of Hormuz, which is why even a limited threat to passage can move prices quickly. Ships have been hesitant to travel through the Strait of Hormuz until there is safe passage, leaving the route exposed to any further disruption.
Chris Wright on reopening
Chris Wright urged other nations to join the US effort in reopening the Strait of Hormuz and said, “world trade should not be the sole responsibility of the United States.” That push adds political pressure to a market that is already pricing in supply risk, not just headline noise.
The 60-day ceasefire between the US and Iran formally expired last month, and Tehran pledged to introduce a restricted maritime zone beyond the Strait of Hormuz in the coming days. If that step narrows traffic further, the next move in Brent crude will be driven by whether cargoes keep moving or sit still.
Donald Trump and the conflict
On Friday, Donald Trump said the conflict is not a war and added, “I call it a military conflict because it’s small potatoes for us. It’s not a big thing,” while describing the attacks as intermittent. That framing sits uneasily beside the weekend strikes and the shipping caution now feeding into Monday’s trading tone.
