The FTSE 100 opened lower on Monday as markets digested a sudden shift in US-Iran tensions.
President Donald Trump has paused military strikes against Iran to allow for talks regarding the Strait of Hormuz, a development that follows weeks of escalating rhetoric and direct threats to the critical waterway.
The pause represents a tactical de-escalation, but the underlying geopolitical friction that has driven shipping risk premiums remains unresolved.
Investors are weighing the immediate relief from the threat of broader conflict against the persistent vulnerability of global trade routes.
The Strait of Hormuz remains a chokepoint for a significant portion of global oil flows, and any disruption continues to pose a severe risk to energy supply chains.
While the halt in strikes may temporarily ease pressure on freight rates and insurance premiums, the fragility of the situation means that risk sentiment is likely to remain volatile.