FTSE 100 Declines as Escalating US-Iran Tensions Push Brent Crude Above $90

London's FTSE 100 index fell on Monday as escalating military conflict between the United States and Iran drove oil prices sharply higher, creating significant headwinds for global equities. The blue-chip index was down 0.61% as of 07:26 GMT, with other European markets also in the red, according to data from Investing.com.

Geopolitical Tensions Rattle Markets

The risk-off sentiment was fueled by reports of a ninth consecutive night of U.S. airstrikes against Iran. U.S. Central Command stated the operations targeted Iranian military and communications infrastructure to "diminish Iran’s ability to attack commercial vessels" transiting the critical Strait of Hormuz.

In an apparent response, Kuwait’s army announced its air defense systems were actively intercepting Iranian drones. The ongoing conflict has raised concerns about a wider regional war and potential disruptions to global energy supplies. U.S. President Donald Trump told journalists that Iran "has been very badly damaged," while Secretary of State Marco Rubio noted to CNN that Washington was receiving "signals through multiple channels of Iran’s desire to negotiate."

Oil Surges on Supply Risk

Fears of a supply disruption in the Middle East sent crude oil prices to their highest level in over a month. Brent crude, the international benchmark, rose 2.35% to $90.18 a barrel, while West Texas Intermediate (WTI) gained 2% to $83.40.

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Other market movements included:

• Germany’s DAX index shed 0.16% and France’s CAC 40 lost 0.05%.
• The British pound traded marginally higher, up 0.08% against the dollar at $1.3466.
• Gold futures edged down 0.24% to $4,009.12 an ounce.

Corporate and Political Developments

In UK company news, industrial property group Segro rejected an improved £13.5 billion takeover proposal from Prologis, stating the offer undervalued the company. Meanwhile, Ryanair reported a 34% drop in first-quarter profit, citing higher fuel costs and weaker fares despite strong passenger numbers.

On the political front, incoming Prime Minister Andy Burnham is expected to travel to Aberdeen to discuss the future of North Sea energy. His office has affirmed it will not abandon the Labour party's pledge to end new exploration licenses, even as it supports the development of existing fields.