Russ Mould, investment director at AJ Bell, said: “It appears last week’s market enthusiasm over the Strait of Hormuz reopening may have been premature.
“Events over the weekend have left the ceasefire between Tehran and Washington looking as fragile as ever.
“The Strait was open for just a day before the US seizure of an Iranian vessel.
“The continuing blockade of the country’s ports over the weekend created a cloud of uncertainty over whether the next round of peace talks will go ahead and saw shipping from the region disrupted once more.
“Brent crude oil prices, which briefly dipped as low as $86 last Friday, are firmly back above $90 per barrel.
“Though they stopped short of the $100 mark which rings alarm bells for the global economy.
“Asian shares rebounded as they were in catch-up mode, having missed the rally seen in the US and Europe on Friday.
“European indices presented a truer picture of the market mood, with investor wariness and weariness amid the continuing tensions in the Middle East.
“The FTSE 100 was spared losses of the scale seen elsewhere thanks to the higher oil price lifting shares in BP and Shell, and the UK market’s roster of more defensive names from the utility and tobacco sectors.
“With a weekly shop a non-negotiable for households, Tesco continues to show resilience too.
“Last week’s results emphasised the strength of Tesco’s competitive position.
“US futures prices pointed to a modest pullback from the all-time highs reached last week.
“However, much may still depend on the latest twists and turns ahead of the Wall Street open.”
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