London open: FTSE edges up despite Middle East escalation

30th Mar 2026 07:58

(Sharecast News) - London stocks edged higher in early trade on Monday despite an escalation in the Middle East conflict pushing up oil prices.

At 0850 BST, the FTSE 100 was 0.3% firmer at 9,993.27. Brent crude was up 3.3% at $116.24 a barrel and West Texas Intermediate was 2.3% higher $101.96.

Oil prices pushed up after Trump said he wanted to take Iran's oil. Speaking to the Financial Times, the US President said he could "take the oil in Iran" and could seize the export hub of Kharg Island.

In an interview with the newspaper on Sunday, he said his "preference would be to take the oil", comparing the potential move to Venezuela where the US intends to control the oil industry "indefinitely" following its capture of leader Nicolás Maduro in January.

Trump said: "To be honest with you, my favourite thing is to take the oil in Iran but some stupid people back in the US say: 'why are you doing that?' But they're stupid people."

Such a move would involve seizing Kharg Island through which most of Iran's oil is exported.

The comments came as Trump boosted US forces in the region, with the Pentagon ordering the deployment of 10,000 troops trained to seize and hold land. About 3,500 troops arrived in the region on Friday, including roughly 2,200 Marines. Another 2,200 Marines are on their way, while thousands of troops from the 82nd Airborne Division have also been ordered to the region.

"Maybe we take Kharg Island, maybe we don't. We have a lot of options," Trump told the FT. "It would also mean we had to be there [in Kharg Island] for a while."

Asked about the state of Iranian defence on Kharg Island he said: "I don't think they have any defence. We could take it very easily."

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Global markets are heading into the week on edge as the Iran conflict continues to cast a long shadow. Fresh worries that troops could be drawn further into the conflict are keeping volatility elevated and confidence fragile. With the volatility index (Vix) closing last week at 31, its highest level since last April's tariff tantrum, investors should be prepared for another turbulent week.

"UK stocks look set for a choppy start, as the FTSE 100 opens slightly higher this morning. With only a light run of company updates ahead, geopolitics is likely to be the main driver of sentiment. Investors are also adjusting to a backdrop where interest rate expectations have shifted, with markets now firmly pricing in rate hikes this year - though we know how quickly these odds can shift.

"Oil prices jumped about 3% to start the week, with crude holding at its highest level since mid-2022 amid the Iran conflict. Doubts over a quick resolution have grown after Iran‑backed Houthi militants stepped up attacks in the region, and the US moved additional troops closer to the conflict. With the Houthis threatening Red Sea shipping lanes and key energy infrastructure, and rumours that Washington is preparing for ground operations, traders are bracing for more supply risk and further price volatility."

There wasn't much in the way of corporate news, but Rio Tinto rallied after the miner maintained its 2026 iron ore guidance despite cyclone disruption.

GSK edged up after saying its Exdensur drug has been approved in China for the treatment of asthma.

The treatment, an ultra-long-acting biologic, was given the green light by the National Medical Products Administration for patients aged 12 years and older with severe asthma.