Iran tensions hit FTSE ratchet up oil trade
As expected, tensions in the Middle East have ratcheted up over the weekend following the US assassination of a top Iranian general Friday. Iraq has asked the US to withdraw its troops from the country because the assassination happened on Iraqi territory while Iran pulled out of the international nuclear deal, prompting President Trump to respond with threats against both countries. The President’s harsh rhetoric has caused some resistance at home as House Speaker Nancy Pelosi said the House of Representatives would vote this week to curb Trump's military powers.
The FTSE, European stocks and US stock futures are showing a sea of red this morning. In London stocks with exposure to the Middle East and the high oil price such as Abu Dhabi-based NMC Health, airlines IAG and easyJet ended up the worst hit. The FTSE gainers were also obvious given the high oil price and rising geopolitical tensions: BP, Shell and military equipment maker BAE Systems.
Safe haven asset volumes rise through the roof
The crisis is channeling investors towards safe-haven assets such as the yen and gold, with gold hitting the highest level in seven years and volumes nearly doubling from most trading days in December.
Brent crude futures continued to nudge at the $70 mark but for the moment that level seems to be holding, at least until the next Middle East news. However, Brent crude trading volumes have risen through the roof since the Middle East tensions escalated last week, with trade on Friday doubling from the previous days and Monday is likely to see a similarly high level of activity.
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.
Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Contracts for Difference (CFDs) are not available to US residents.
FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited, 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA is a member of the Canadian Investment Regulatory Organization and Member of the Canadian Investor Protection Fund. GAIN Capital – FOREX.com Canada Limited is a wholly-owned subsidiary of Stonex Group Inc.
Complaints are taken very seriously at FOREX.com. You can view our complaints procedure here.
© FOREX.COM 2025