Oil spikes above $91 as Trump ends US‑Iran ceasefire, shaking the FTSE 100

Brent crude surged past $91 a barrel on Monday after Donald Trump confirmed at the White House that the 60‑day cease‑fire with Iran would not be extended. The move came as the Strait of Hormuz remained a flashpoint, prompting the FTSE 100 to open flat and traders to adopt a wait‑and‑see stance.

Why the oil jump matters

Higher oil prices translate into costlier transport and energy bills, a direct hit for inflation‑sensitive economies. Investors in the UK’s flagship index are already feeling the pressure from a backdrop of geopolitical risk, and the rise in Brent adds another layer of uncertainty to an already volatile market.

"It’s a great idea. I mean, we control it with the blockade, and I like the idea of declaring it a territory," said Donald Trump when asked about the Strait of Hormuz.

Other market moves

In the midst of the oil rally, several UK‑listed companies reported noteworthy developments. Made Tech announced the biggest contract in its history, a government‑backed deal that could accelerate its growth trajectory. Kainos lifted its financial targets after citing a "record backlog" of work, while Mike Ashley’s Frasers increased its stake in Hugo Boss. Meanwhile, vacancy rates fell to the lowest level in over five years, signalling a tight labour market.

What comes next

Analysts expect oil to remain volatile as diplomatic channels stay strained. Any further escalation in the Strait of Hormuz could push prices higher, pressuring the FTSE 100 and prompting a reassessment of risk‑on assets. Investors are watching for signs of renewed negotiations or additional US sanctions, both of which could reshape the market outlook.

For a broader view of how geopolitical risk is already weighing on the UK economy, see our analysis of growth forecasts amid war and tax concerns.