London pre-open: Stocks to slide on Iran conflict
By Michele Maatouk
Date: Monday 02 Mar 2026
(Sharecast News) - London stocks were set to slide at the open on Monday after the US and Israel launched strikes on Iran over the weekend.
The FTSE 100 was called to open around 0.6% lower, while Brent crude was up 9.2% at $79.61 a barrel.
Emma Wall, chief investment strategist at Hargreaves Lansdown, said: "Events in the Middle East over the weekend - the US-Israel strikes on Iran, and subsequent retaliations across the region - have added uncertainty, and volatility, to an already choppy market.
"Global equities, buffeted by AI disruption fears and ever-changing tariff policy over recent months, are now digesting the likelihood of significantly higher oil prices, supply chain concerns, and the potential for subsequent higher inflation.
"Investors have reacted by turning 'risk-off', buying in to the perceived safe havens of gold, the US dollar and the Swiss franc. Initial equity market reaction was mixed. Middle Eastern markets trading yesterday fell - but only by 2-4% as key oil producers listed in the region provided a counter to wider losses. Today, Asian equity markets have fallen 1.6%, with European and US futures down. Europe markets indicate an open of down 1.7% and S&P 500 futures are 1% down.
"Investors globally are broadly selling equities to fund the risk-off pivot, but the energy sector looks set to gain. US treasury bonds and UK gilts are also expected to benefit."
Despite the weaker opening call, the FTSE 100 is expected to be an outperformer, as the proliferation of defence names and oil majors help to prop up the index, said Kathleen Brooks, research director at XTB.
Investors will be mulling the latest survey from Nationwide, which showed that house price growth held steady in February.
House prices were up 0.3% on the month and 1% on the year, unchanged on January.
The average price of a home stood at £273,176 last month, versus £270,873 in January.
Robert Gardner, Nationwide's chief economist, said: "This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget. Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic."
Gardner said "housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected".
In corporate news, Energean said the Israeli government had ordered it to suspend production at its floating gas production, storage and offloading facility near the country's coast in response to the war with Iran which began on Saturday.
The Middle-East and Mediterranean gas producer said it was maintaining a close dialogue with the Ministry of Energy and Infrastructure and other relevant stakeholders "to facilitate the safe resumption of production as soon as possible".
The FPSO sits over the Karish gas field about 90km offshore and is connected to Israel's national grid.
Smith & Nephew posted a jump in annual revenues and profits as new products helped bolster demand.
Revenues in the year to 31 December rose 6.3% at the medical devices group, or by 5.3% on an organic basis, to $6.16bn. Trading profit spiked 15.5% at $1.21bn.
Smith & Nephew said growth had been supported by robust demand across all divisions, as well the launch of new products and favourable currency effects.
Distribution firm Bunzl reported a drop in full-year adjusted operating profits despite posting higher revenues, as margins came under pressure over the year.
Bunzl said adjusted operating profits fell 4.3% at constant exchange rates to £910.3m, despite group revenues growing 3% at constant exchange rates to £11.84bn, driven by acquisitions.
Underlying revenues rose 0.4%, including 0.9% growth in the second half. The FTSE 100-listed firm said operating margins slipped 0.6% from 8.3% to 7.7%.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN