14.07.202607:37:58UTC+00FTSE 100 Falls on Tuesday

The FTSE 100 slipped on Tuesday as renewed tensions between the US and Iran drove oil prices higher, with strength in energy and mining shares outweighed by broader market weakness. President Donald Trump said the US would reinstate a blockade on Iranian vessels using the Strait of Hormuz and seek payments on all other cargo transiting the key waterway.

Banking stocks came under pressure, with HSBC, Lloyds Banking Group and Barclays each down about 0.6%, NatWest off 0.9%, and Standard Chartered losing more than 1%. Defence names also retreated, with Rolls-Royce down 2% and BAE Systems slipping 0.6%. Consumer and pharmaceutical heavyweights were weaker as well, including Unilever, British American Tobacco, GSK and AstraZeneca.

AstraZeneca announced an exclusive global licensing agreement for its lung cancer therapy Zegfrovy in a deal worth up to $1.5 billion.

On the upside, energy majors benefited from the move in crude prices: Shell gained 1.6% and BP climbed 2.7% after reporting stronger refining margins. Miners also advanced, with Rio Tinto, Glencore, Anglo American and Antofagasta each rising more than 1%.