London stocks fall as oil surges after collapse of US–Iran peace talks

London’s stock indexes fell on April 13 after the United States moved to blockade Iranian shipping following the collapse of weekend peace talks, which dampened hopes of a swift end to the Middle East conflict, Reuters reports.

The blue-chip FTSE 100 index fell 0.4% to 10,558.38 points by 0944 GMT, while the midcap FTSE 250 slipped 0.8%.

Markets were broadly affected by a risk-off sentiment globally, as failed US–Iran talks pushed oil prices back above $100 per barrel.

The two indexes had posted gains last week following a two-week ceasefire between the United States and Iran, although the fragile truce had already shown signs of strain amid continued fighting.

Heavyweight banking stocks came under pressure, with HSBC and Barclays leading declines, down 1.1% and 1.3% respectively.

Energy stocks moved higher as oil prices surged, with Shell and BP each rising about 1.8%.

Travel and leisure shares declined amid higher oil prices. Cruise operator Carnival fell 3.9%, while airline stocks also edged lower.

EasyJet and Wizz Air dropped 4.3% and 7.3% respectively. Bernstein downgraded Wizz Air to “market-perform” from “outperform.”

A report said Finance Minister Rachel Reeves is expected to outline measures later this week to support businesses affected by rising energy prices in the wake of the Middle East conflict.

Homebuilder Vistry appointed insider Adam Daniels as CEO, but its shares still fell 4.9% amid broader market weakness.

Wise shares rose 5.3% after the fintech group reported a 26% increase in fourth-quarter cross-border transaction volume.

By Vafa Guliyeva