London’s stock indexes experienced a decline on Monday following developments in the U.S. moved to blockade Iranian shipping after the collapse of the weekend peace talks, which diminished expectations for a rapid resolution to the Middle East conflict. The blue-chip FTSE 100 index fell 0.4% to 10,558.38 points by 0944, while the midcap FTSE 250 slipped 0.8%.

London markets experienced a risk-off sentiment globally, as unsuccessful U.S.-Iran negotiations led to a resurgence in oil prices, surpassing $100 a barrel once more. The two indexes recorded gains last week following a two-week ceasefire between the U.S. and Iran; however, the tenuous truce exhibited signs of strain as hostilities persisted.
Heavyweight banks faced pressure on Monday, with HSBC and Barclays leading the declines, down 1.1% and 1.3%, respectively.

Energy stocks gained, with Shell and BP rising about 1.8% each. Travel and leisure stocks declined as oil prices jumped. Cruise operator Carnival was down 3.9%, while airlines also inched lower. EasyJet fell 4.3% and Wizz Air declined 7.3%, respectively. Bernstein has revised its rating on Wizz, moving it from “outperform” to “market-perform”. A report indicated that Finance Minister Rachel Reeves is expected to outline her strategy to assist businesses facing challenges due to elevated energy prices later this week, following the developments in the Middle East conflict.

Homebuilder Vistry has appointed insider Adam Daniels as CEO; however, its shares experienced a decline of 4.9% in the context of broader market downturns. Wise opens new tab advanced 5.3% after the fintech group reported a 26% jump in fourth-quarter cross-border transaction volume.