Tuesday 25 August 2026 6:30 am
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Tuesday 25 August 2026 8:08 am
Welcome to City AM’s FTSE 100 live blog (AP Photo/Alex Brandon via PA Wire)
Welcome back to the City AM FTSE 100 liveblog.
The blue-chip index jumped on Tuesday morning as investors brushed off the US’ threats of the “greatest financial offensive ever” against Iran and its trading partners.
At a press conference last night, US Treasury Secretary Scott Bessent’s threatened an “onslaught” of new economic sanctions against Iran and countries which refuse to cut ties with it.
Despite promising ahead of the announcement to set out his plans to deliver “economic D-Day,” Bessent stopped short of enacting any big new penalties on Iran or its trading partners. The Trump administration instead said it has expanded the definition of “Iran-related conduct” which it could sanction in the future.
“We find that the best way to engage with countries is through quiet diplomacy, and we are level-setting with every country to tell them our expectations,” Bessent said, adding: “We know who they are. They know who they are.”
Susannah Streeter, Wealth Club’s chief investment strategist, said: “Markets are in wait-and-see mode, as stricter US sanctions on Iran take hold and investors wait for the latest snapshot of demand for AI infrastructure from tech giant Nvidia.
“The FTSE 100 looks set to continue to grind higher, extending its run as heavyweight miners bolster the blue-chip index. The London market is proving remarkably resilient given the cocktail of geopolitical tensions, stubborn inflation concerns and uncertainty over the path of interest rates.”
The price of Brent crude – the international benchmark for oil – fell more than two per cent to just below $92 per barrel on Monday.
In domestic news, Prime Minister Andy Burnham fuelled speculation that he will raise taxes at October’s Budget after he told ITV News that he “won’t be unrealistic” about the state of the public finances.
We’ll be bringing you the latest market updates and analysis.
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As it happened: Stocks rally; US to unveil ‘economic D-Day’ Iran sanctions
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