FTSE 100 Live: Stocks Inch Up, Oil Climbs After Iran Threat to UK

Monday 11 May 2026 6:30 am. FTSE 100 Live: Stocks to inch up; Oil climbs after Iran threat to UK. By Samuel Norman, Senior City Reporter.

Political Anxieties Persist

Good morning and welcome back to the City AM liveblog. Political anxieties show no sign of easing up today, indicating that global markets are in for another dose of uncertainty. Donald Trump has dismissed Iran's response to the latest US attempt to end the conflict in the Middle East, a move that has sent Brent crude higher and firmly in triple digits at around $100.

Iran's Proposal Rejected

According to Iran's semi-official Tasnim news agency, the regime in Tehran sent a proposal via Pakistan, which included an immediate end to the war on all fronts, a halt to the US naval blockade of Iranian ports, and guarantees of no further attacks on Iran. However, Trump took to Truth Social, posting: "I have just read the response from Iran's so-called 'Representatives.' I don't like it – TOTALLY UNACCEPTABLE."

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Iran Warns UK

Iran's deputy foreign minister also issued a stern warning to the UK on Sunday regarding the potential deployment of warships in the Strait of Hormuz. "Any deployment and stationing of destroyers around the Strait of Hormuz, under the pretext of 'protecting shipping', is nothing but an escalation of the crisis," he posted on social media. "The presence of French and British warships, in the Strait of Hormuz, potentially accompanying the illegal and internationally unlawful actions of the US will be met with immediate decisive response."

HMS Dragon Deployment

The Ministry of Defence said on Saturday it was sending the HMS Dragon warship to the Middle East in preparation for a potential multinational effort to protect shipping in the Strait of Hormuz, where around a fifth of the world's oil supply flows through.

Starmer's Political Fight

Elsewhere, we are expecting to hear from Prime Minister Sir Keir Starmer today as he fights for his political career following a disastrous local elections. We will be keeping you up to date with the latest.