London's FTSE 100 closed 0.29% lower on Monday as uncertainty over the reopening of the Strait of Hormuz weighed on investor sentiment, with conflicting signals from Iran over a potential shipping agreement with Oman.
While Iranian Foreign Minister Abbas Araghchi said discussions with Oman had reached the final stages, Iran's Revolutionary Guards warned that the waterway would remain closed until the US "corrects its behavior" and meets its demands.
"Correcting its behavior means that Iran must never again be threatened or humiliated, aggression against Iran and its allies must end permanently, the naval blockade must be lifted, US naval and air forces must withdraw from around Iran, war damages must be compensated, sanctions must be lifted and Iran's frozen assets must be released," said Mohammad-Bagher Zolghadr, secretary of Iran's Supreme National Security Council.
In corporate news back home, Plus500 (PLUS.L) climbed 3.89% after forecasting 2026 revenue in line with the current market forecast of $811.5 million. The fintech group's interim profit attributable to equity holders for the six months ended June 30 rose year over year to $151.9 million from $149.6 million, while revenue increased 12% to $462.9 million.
On the flip side, Imperial Brands (IMB.L) dropped 5.28%, making it the biggest loser on the blue-chip index, as Bloomberg News reported that it plans to lay off thousands of workers in Europe and the US as part of its cost-cutting measures.
Serica Energy (SQZ.L) said its 0.326683 pound-sterling-per-share offer for oil and gas explorer and producer Pharos Energy (PHAR.L) is final and will not be increased. The statement came after Israel-based oil and gas explorer Ratio Petroleum raised its bid for the target and secured irrevocable undertakings from 41.76% of Pharos shareholders. Serica was up 3.66%, while Pharos lost 6.87%.
Meanwhile, Vistry Group (VTY.L) slumped 11.28% after Financial Times reported the homebuilder could face a further cash squeeze if its insurer, Allianz Trade, adjusts credit limits for its suppliers. Vistry toldit was not aware of any suppliers withdrawing trade due to changes to credit insurance and had seen no interruptions to its supply chain. Allianz Trade said it is unable to disclose details about the companies it insures or has exposure to, citing the proprietary nature of the information.
Looking ahead, investors will focus on Thursday's batch of UK economic data, including gross domestic product, business investment, industrial production, the trade balance and construction market numbers, among other releases.