FTSE 100 Dips as Investors Eye US-Iran Diplomacy

The FTSE 100 closed down 0.3% on Tuesday as investors monitored potential diplomatic progress between the United States and Iran. Market sentiment shifted on reports that Iran may consider reopening the Strait of Hormuz within seven days if the U.S. eases military pressure, a move that could precede talks to end hostilities. This optimism follows the travel of Iranian President Masoud Pezeshkian to New York for the UN General Assembly, where investors anticipate a possible meeting with U.S. President Donald Trump.

Corporate performance provided mixed results for the index. Kingfisher shares surged 12% after the company raised its full-year profit guidance, driven by strong performance from its Screwfix brand. In the technology sector, Meta Platforms saw share price growth following the success of its AI agent, Muse, which became the most-downloaded free app in the United States.

Conversely, Standard Chartered shares fell 2.3% following a Financial Times investigation. The report alleged the bank processed billions of dollars for A7, a Kremlin-backed fintech network used to bypass Western sanctions.