April 7 (Reuters) - UK shares advanced on Tuesday following the long weekend break, boosted by energy and consumer staples stocks ahead of U.S. President Donald Trump's deadline for Iran to open the
UK stocks fall in broad-based declines as Trump's Iran deadline looms
Market Overview and Key Developments
April 7 (Reuters) - UK shares ended lower in broader-based losses on Tuesday, as investors turned risk-averse heading into U.S. President Donald Trump's deadline for Iran to open the Strait of Hormuz with no compromise in sight.
Trump's Ultimatum and Geopolitical Tensions
Trump threatened that "a whole civilization will die tonight" as Iran showed no sign of accepting his ultimatum to open the Strait of Hormuz by Tuesday evening, Washington time.
Market Performance
FTSE Indices Movement
The blue-chip FTSE 100 index dropped 0.8% to 10,348.8 points at close, while the midcap FTSE 250 slid 0.4%.
Iran Deadline Impact
Trump has given Iran until 8 p.m. in Washington (0000 GMT and 3:30 a.m. in Tehran) to end its blockade of Gulf oil.Post-Holiday Trading
Trading in the UK picks up on Tuesday after a long weekend break where markets were shut for the Good Friday and Easter Monday holidays.FTSE 100 Streak
The blue-chip index briefly hit an over one-month high earlier in the day, but Tuesday's fall meant snapping a four-day winning streak.
Sector Performance
Aerospace and Defence
Aerospace and defence lagged, declining 2.6%; shares of Rolls-Royce fell 3.9%.Travel and Leisure
Travel and leisure shed 1.9% with airline stocks particularly hit as crude oil prices climbed amid the volatile situation in Iran.Oil and Gas
Oil and gas was a bright spot, rising 0.8% tracking higher crude oil prices.Banks, Pharmaceuticals and Biotech
Heavyweight banks lost 0.8%, while pharmaceutical and biotech shares fell 2.2%.
Economic Data and Investor Focus
UK Services Sector
On the data front, a survey showed that businesses in Britain's services sector reported the biggest month-on-month jump in costs in March since 2021.Upcoming U.S. Inflation Data
A U.S. inflation reading due later this week would be on investors' radar for more clues on the Federal Reserve's interest rate path.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sahal Muhammed and Matthew Lewis)
