UK stocks slip as uncertainty over US-Iran ceasefire lifts oil prices

Mon, 20th Apr 2026 17:21

April 20 (Reuters) - The UK's main ⁠stock indexes dipped on Monday in broad-based losses as fears that the U.S.-Iran ceasefire could collapse weighed on sentiment.

The U.S. ‌seized an Iranian cargo ship and traffic through the Strait of Hormuz ⁠remained largely halted, sending crude oil prices ⁠more than 5% higher.

The blue-chip FTSE 100 index fell 0.6%, while the midcap FTSE 250 slipped 1.2%.

* Heavyweight bank Barclays was down 2.2%, while HSBC dipped 1.1%, bringing the broader ‌banks index 1.7% lower.

* Precious metal miners Fresnillo and Hochschild fell about 2%, tracking a decline in gold and silver prices.

* British Airways owner IAG was down 2.8% as crude prices jumped, while oil giants BP and Shell rose more than 2% each, tracking gains ‌in oil prices.

* The main UK indexes were last week trading at their highest level since early March ‌as hopes of a de-escalation in the Middle East conflict spurred risk-on mood and pushed traders to dial back their bets on Bank of England rate hikes this year.

* Investors were also keeping a close eye ‌on politics as Prime Minister Keir Starmer faces renewed calls to resign over his decision to appoint Peter Mandelson as ambassador to the U.S.

* AstraZeneca ⁠said ⁠on Monday its experimental treatment showed a "meaningful reduction" ‌in moderate-to-severe flare-ups of chronic obstructive pulmonary disease in a late-stage trial. Shares were down 1.1%.

* Shares of luxury handbag maker Mulberry climbed 7.5% after it ‌reported higher annual revenue.

* Engineering firm Renishaw gained 6.2% after it raised its full-year profit forecast. (Reporting by Utkarsh Tushar Hathi and Sruthi Shankar; Editing by Shreya Biswas and Keith Weir)