The FTSE 100 opened lower due to geopolitical tensions following the US attack on Iranian nuclear sites and Iran's Parliament approving the potential closure of the Strait of Hormuz. British Airways suspended flights in reaction to the escalating conflict. Analysts, including Phillip Ingram and Ipek Ozkardeskaya, expressed concerns over a potential economic shock that could occur if Iran closes this vital oil transit route, which sees a significant portion of the world's oil and gas flow. The situation remains precarious as global markets react to these developments.
Phillip Ingram warned on Sky News that should Iran close the Strait of Hormuz, there will be an enormous global 'economic shock.' He stated that such a closure would dwarf the economic effects witnessed during the Ukraine war.
Ipek Ozkardeskaya stated that the world is "holding its breath to see how Iran will respond" following the US attack, indicating the global concern about potential disruptions in oil trading.
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