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London pre-open: Stocks to slump amid Hormuz standoff; retail sales in focus
By Michele Maatouk
Date: Friday 24 Apr 2026
(Sharecast News) - London stocks were set to slump at the open on Friday amid ongoing concerns about the US-Iran standoff in the Strait of Hormuz and after Trump threatened to impose tariffs on the UK if it does not drop its digital services tax on US social media companies.
The FTSE 100 was called to open around 75 points lower.
Speaking to reporters at the Oval Office on Thursday, the US president said: "We've been looking at it and we can meet that very easily by just putting a big tariff on the UK, so they better be careful.
"If they don't drop the tax, we'll probably put a big tariff on the UK."
The tax, which was introduced in 2020, imposes a 2% levy on the revenues of a number of US tech companies.
Investors will also be mulling Trump's announcement that the ceasefire between Lebanon and Israel has been extended by three weeks.
Susannah Streeter, chief investment strategist at Wealth Club, said: "It's shaping up to be a frustrating Friday, with oil prices on the march higher yet again and companies and consumers left counting the cost of the conflict. In just a week, we've had a sharp reversal of hope, with the key Strait of Hormuz firmly shut and President Trump issuing shoot-to-kill orders to the US Navy for any boats laying mines.
"Brent crude is up around 20% on the week and is trading around the hot level of $105 a barrel, as any hopes of an immediate easing of the crisis are shattered. President Trump has stressed he's in no rush to end the war, and with the ceasefire extended for another three weeks, there's set to be fresh financial pain ahead as key shipments from the region remain blocked. That is set to keep costs elevated for a vast array of commodities, from oil and gas to fertiliser and helium, which are vital for electronics manufacturing.
"The FTSE 100 is set for a fresh downbeat start to trading as investors assess the repercussions for the multinationals listed on the index, and companies whose fortunes are tied to the health of the UK economy."
On home shores, figures from the Office for National Statistics showed that retail sales unexpectedly rose in March as consumers rushed to get fuel after the outbreak of war in the Middle East.
Retail sales volumes increased 0.7% in March following a 0.6% decline in February, with fuel sales up sharply. Analysts had expected sales to be flat.
Streeter said: "There was panic at the pumps in March, as escalating prices saw motorists race to fill up their tanks to try to save cash and build reserves in case of shortages. A surge in purchases on forecourts was the biggest driver behind the uplift in monthly retail sales.
"Automotive fuel sales shot up by 6.1%, helping push overall retail sales for the month up by 0.7%, following a fall of 0.6% in February. But strip out fuel sales and total retail sales only grew by 0.2% on the month.
"Clothing sales did improve thanks to the sunnier weather, but the uplift looks set to be short-lived. It's set to be tough going ahead for retailers as fuel prices stay elevated and consumers brace for other bill increases, meaning they are likely to tighten their purse strings in the months to come."
In corporate news, paper and packaging firm Mondi reported a fall in first quarter underlying earnings as market conditions remained "challenging".
Underlying EBITDA came in at €212m, down from €290m a year earlier. Mondi added that the Iran war had "further increased volatility in an already complex operating environment" leading to increased energy, raw material and logistics costs.
Technology and services provider Computacenter said it had delivered a "strong" first‑quarter performance, coming in "significantly ahead" of the prior year and "well above" internal expectations, driven by robust growth in its technology sourcing unit and continued progress in services.
Computacenter said group technology sourcing revenues rose "particularly strongly", supported by significant demand from hyperscale customers in North America and the UK, while services revenue also improved year‑on‑year, with strong organic growth in professional services - again led by North America - offsetting a decline in managed services.
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