British equities opened mixed on Wednesday as investors balanced lingering doubts over the durability of a U.S.-Iran ceasefire with fresh data showing U.K. inflation rose in March. Elevated oil prices and concerns about crude shipments through the Strait of Hormuz helped keep sentiment cautious across markets.
U.S. President Donald Trump announced an indefinite extension of a ceasefire with Iran while saying the United States would continue a naval blockade. Tehran has not issued a formal reply and has previously stated it would not enter negotiations while the blockade remains in place.
By 03:15 ET (07:15 GMT), the blue-chip FTSE 100 was down 0.2%. In contrast, major continental European indexes moved higher, with Germany's DAX up 0.2% and France's CAC 40 rising 0.1%. Sterling was firmer against the dollar, with GBP/USD up 0.1% at 1.3515.
Oil prices eased on Wednesday following the announcement of the ceasefire extension, but traders remained on edge about the outlook for peace talks and potential supply disruptions. Market attention stayed fixed on the Strait of Hormuz - a crucial route for global crude flows that accounts for about 20% of world oil consumption - where shipping has been severely curtailed amid the conflict.
Writing on Truth Social, President Trump said Iran was "losing $500 million a day" and "starving for cash," and that it wanted the Strait reopened. He added that the United States would "continue the blockade" while remaining ready for further action. Trump also said Iran's government was "seriously fractured" and that Washington would hold off on further attacks while awaiting a unified proposal from Tehran, but warned there could be no deal unless conditions around the blockade changed. He said Iran wanted the waterway open to generate revenue but was publicly taking a harder stance to "save face."
The ongoing curtailment of shipping through the strait has supported crude prices despite the ceasefire, reinforcing the link between regional security and energy markets.
Domestically, the Office for National Statistics reported U.K. inflation rose to 3.3% in March, a figure that matched expectations. The rise was driven in part by the sharpest increase in fuel prices in over three years, which pushed up consumer prices and contributed to broader cost pressures across transport and food.
Economists cautioned that inflation could move higher if energy prices remain elevated, a risk that would have implications for households and sectors sensitive to fuel and transport costs.
Market participants continued to parse developments in Washington and Tehran for signals on whether the ceasefire will hold and whether the blockade will be altered, recognizing that outcomes in the region have direct implications for oil flows and price stability, and by extension for inflation and equities in affected sectors.
Summary
London opened with mixed stock performance as uncertainty around a U.S.-Iran ceasefire extension and higher U.K. inflation for March weighed on investor sentiment. While some European indexes edged up, the FTSE 100 was slightly lower and sterling strengthened. Oil market volatility, driven by shipping disruptions through the Strait of Hormuz, remained a key market influence.