FTSE 100 LIVE: Stocks tumble as G7 nations plan emergency meeting over Iran war

Global stocks, including the FTSE 100, are experiencing significant declines following news of a planned emergency G7 meeting to address escalating tensions related to a potential conflict with Iran. This geopolitical uncertainty is driving a risk-off sentiment in markets, with investors fearing broad economic instability and potential disruptions to oil supplies. Energy prices have surged, reflecting supply concerns, while safe-haven assets like gold and government bonds have seen increased demand. For investors, the immediate concern is the impact on corporate earnings and consumer confidence should the situation deteriorate. Sectors sensitive to oil price fluctuations, such as aviation and logistics, are particularly vulnerable. The broader market is reacting to the possibility of supply chain disruptions and increased inflation, which could prompt central banks to maintain higher interest rates for longer, thereby impacting economic growth and investment returns. Traders will be closely monitoring the outcomes of the G7 meeting for any de-escalation strategies or further indications of military action. Any signs of diplomatic progress could offer a reprieve, while a lack of clear resolution might sustain market volatility. The coming days will be critical in shaping investor sentiment and determining the near-term trajectory for global equities and commodities. The full implications for investors will depend on follow-through in price action, positioning data and forthcoming policy or earnings catalysts referenced above.