UK shares close lower in broad-based losses

The UK’s ​blue-chip FTSE 100 index dropped 0.8 per cent to 10,348.8 points ⁠at close, while the midcap FTSE 250 slid 0.4 per cent

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 threatened Iran, while Iran showed no sign of accepting his ultimatum to open ​the Strait of Hormuz by Tuesday.

The UK’s ​blue-chip FTSE 100 index dropped 0.8 per cent to 10,348.8 points ⁠at close, while the midcap FTSE 250 slid 0.4 per cent.

The U.S. ​president 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.

Trading in the UK picks up on Tuesday after a long weekend break where stock markets were ​shut for the Good Friday and Easter Monday holidays.

The blue-chip ​index briefly hit a more than one-month high earlier in the day, but ‌Tuesday’s ⁠decline meant snapping a four-day winning streak.

The aerospace and defence sectors lagged, dropping 2.6 per cent; shares of Rolls-Royce slid 3.9 per cent.

Travel and leisure sectors slipped 1.9 per cent with airline stocks particularly hit as crude oil prices jumped amid ​the volatile situation ​in the Middle East.

The oil ⁠and gas sector was a bright spot, rising 0.8 per cent tracking higher crude oil prices.

Heavyweight banks shed 0.8 per cent, ​while pharmaceutical and biotech shares dropped 2.2 per cent.

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.