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ConflictFTSE 100 set to drop after Trump warns Iran to 'behave' following airstrikes
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The FTSE 100 is expected to decline as UK markets react to escalating US-Iran tensions and upcoming GDP data. The UK is set to release May GDP figures, with economists forecasting flat growth due to the global energy shock from the US-Iran war. Brent crude oil prices hovered near $85 per barrel after US airstrikes targeted Iranian missile facilities near the Strait of Hormuz. A previously agreed ceasefire between Trump and Iran has been dropped, threatening renewed economic instability. President Trump stated he would not set a new deadline for peace, warning Iran to 'behave' and suggesting the US might 'finish it off.' Iran's top negotiator, Mohammad Bagher Ghalibaf, emphasized that Tehran's national security depends on maintaining control over arrangements in the Strait of Hormuz, a key point of contention in negotiations.
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Welcome back to the City AM liveblog.
The UK is set to receive its latest GDP figures for the month of May, with the impact of the US-Iran conflict expected to weigh on economic growth following pressure on industries from the global energy shock.
A poll of City economists by Bloomberg forecasts that the UK economy flatlined in May.
The fresh data comes ahead of what was expected to be the first ceasefire agreement between President Trump and Iran. However, the agreement has since been dropped in a move that threatens to reignite economic turmoil across the globe.
Oil Markets
Brent crude — the international benchmark for oil prices — fluctuated around the $85 per barrel mark on Thursday morning, staying close to one-month highs after the US ramped up its military campaign against Iran.
US forces carried out fresh airstrikes targeting Iranian missile storage facilities and launch sites near the strategic waterway.
Trump's Remarks
Asked whether he would give a new deadline for a peace deal, Trump said:
"I don't like giving deadlines, but they pretty much know, they know the story… they better behave."
He later added:
"They want to settle so badly. They don't like what we're doing… we'll find out whether we want to settle with them or if we just finish it off."
Iran's Response
Iran’s top negotiator, Mohammad Bagher Ghalibaf, told the country’s state media that Iran’s national security depended on Tehran maintaining "Iranian arrangements" in the Strait of Hormuz — a key area of contention throughout peace talks.
We’ll be bringing you the latest market updates and analysis.
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FTSE 100 Set to Drop After Trump Warns Iran to 'Behave' Following Airstrikes