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Donald Trump speaking at a podium, microphone visible, discussing the Strait of Hormuz
IIran

FTSE 100 Live: Stocks slide as US vows to ‘crush’ Iran economy

  • August 20, 2026

Thursday 20 August 2026 6:41 am
 |  Updated: 

Thursday 20 August 2026 10:24 am

Donald Trump speaking at a podium, microphone visible, discussing the Strait of Hormuz Trump said he would claim the Strait of Hormuz as US territory. (Image: PA)

Welcome back to the City AM liveblog.

Oil prices are holding over $91 as the US and Iran remain embroiled in conflict over which nation is controlling the Strait of Hormuz.

President Donald Trump has insisted oil continues to flow through the narrow waterway, even as stockpiles have depleted. Trump has said that there were no talks “going on, or scheduled” with Iran. 

Last night, the President said he would initiate the “most crushing economic operation ever taken against any country” on Iran.

In a lengthy post on Truth Social, Trump made his latest threat as he claimed Tehran “failed to take” a deal, resulting in what he called “economic warfare and isolation on an unprecedented scale”. 

“These maniacs are on the ropes,” Trump said as he described his economic measures as “historic” and having the ability to “cripple them”. 

He warned that any country providing “any type of lifeline” to Tehran would face “tremendous economic consequences”. The UAE has already announced a suspension of financial and economic transactions with Iran after accusing Tehran of launching ballistic missiles at its territory.

The 60-day ceasefire between the two US and Iran came to an end on Monday. Tehran branded a future agreement as not dead but in a “coma”.

Figures from the International Energy Agency this week showed crude inventories increased by 4.4m barrels last week, but distillate stocks declined by 1.5m barrels to their lowest level in more than a month.

We’ll be bringing you the latest market updates and analysis.

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As it happened: FTSE 100 slump as oil soars; Trump says Iran will be ‘hit hard’ tonight

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