FTSE 100 Falls as Oil Prices Plummet Amid US-Iran Talks

The FTSE 100 index opened lower on Monday, August 3, 2026, due to declines in oil prices and AstraZeneca's stock, which fell by over 6% after rumors of a potential merger with US-based drugmaker Bristol Myers Squibb.

Reports of new talks between the United States and Iran sent Brent crude oil prices plummeting by close to 4.8% to $83.69 per barrel, negatively affecting energy firms Shell and BP, which fell over 2% each.

On the other hand, housebuilders Persimmon and Barratt Redrow climbed over 4%, as investors expect less interest rate hikes from the Bank of England. Banking shares also rose, along with Rolls-Royce, which gained around 3.8%.