The FTSE 100 slipped on Monday after US-Iran talks over the weekend ended without a deal, prompting Trump to threaten to blockade the Strait of Hormuz.

Oil prices surged on the news, but the FTSE 100 slipped just 0.4%, suggesting either equity traders believe Trump may chicken out again or that there’s a degree of complacency in trade on Monday after a rip-roaring rally last week for global stocks.

Susannah Streeter, chief investment strategist, Wealth Club, said: “Trump’s high stakes gamble aimed at forcing Iran to bow to his demands has sent oil prices rocketing. It’s sent a fresh jolt of pessimism through financial markets with the FTSE 100 opening lower.”

“Brent Crude, the benchmark, shot up by 8% to 103 a barrel, with prices fluctuating around this highly elevated level. By blockading the Strait of Hormuz, Trump is turning Iran’s chokepoint into a US stranglehold. The prospect of all tankers ceasing transit through this key waterway is making the energy crisis even more acute.”

The blockade is set to come into force at 3.00pm BST today, and markets may become choppier as the session progresses. US futures were pointing to a 0.5% lower open for the S&P 500 at the time of writing.

That said, losses are relatively contained, given the potential risks to the global economy if the US and Iran don’t reach a deal in the near-term.

“The stagflation word is being widely aired once again as geopolitical turmoil threatens to stymie international growth and stoke inflationary pressures,” said AJ Bell investment director Russ Mould.

Talk of stagflation meant it was a familiar story for several interest-sensitive sectors on Monday. Higher oil prices stoked inflation fears, leading to declines for housebuilders and retailers.

Barratt Redrow shares were 2.4% lower as Persimmon lost 2.2%. The pair stormed higher when the ceasefire was announced last week, but the rally is fading, and they’re edging back towards the lows.

Barratt Redrow and Persimmon are the two worst-performing FTSE 100 stocks since the US and Israel attacked Iran.

Blockading the Strait of Hormuz could cause real problems for airlines, which reportedly have only 3 or 4 weeks before jet fuel shortages start to disrupt operations. Naturally, this made airline shares less attractive and IAG shares fell 2.1%.

BP and Shell were among the top risers with oil back around the $100 mark.

Admiral was the FTSE 100’s top riser as the insurer continued its march higher after releasing strong results last month, which have seen the stock immunised against concerns around the Middle East. Admiral was 2.8 higher at the time of writing.

The FTSE 100 has long been seen as a defensive income play, and these are just the attributes investors can seek in times of uncertainty.

We’ve delved into London’s leading index and picked out two dividend shares that stand out for their income-bearing characteristics, which should help longer-term investors ride out current uncertainties both at home and abroad.

Legal & General (LON:LGEN)

With an 8.4% yield, Legal & General is an obvious choice for investors seeking an income during times of volatility. Shares have held up well during the Middle East war, with the market seeing them as a ‘safer’ bet.

L&G’s quality is underpinned by a strong set of full-year 2025 results, with core operating EPS up 9% to 20.93p and core operating profit rising 6% to £1,623m.

That EPS growth sits at the upper end of their 6-9% CAGR target through 2027, so they’re tracking well against guidance.

As well as paying a healthy dividend, L&G is launching a £1.2bn share buyback, the largest in its history, funded by £1bn from the US protection business sale to Meiji Yasuda and £200m from its distribution policy.

Combined with a 2% dividend increase to 21.79p per share, planned returns to shareholders hit £2.4bn over the next year, with more than £5bn expected over 2025-27.

Those who favour cash returns through dividends may have preferred a larger dividend increase, but the yield is already substantial.

Management expects 2026 EPS growth at the top end of its target range.

Land Securities (LON:LAND)

To consider Land Securities, you have to hold some semblance of positivity about the UK economy, which we recognise is easier said than done in the current environment.

But Land Securities’ 7% yield and share price trading near multi-year lows suggest it has already priced in the quagmire that is the UK economy, and the stock may react well to even the slightest improvement in sentiment.

After a period of selling down weaker areas of its portfolio, Landsec is refocusing on high-quality properties across the UK to add to its portfolio, which includes assets such as the Brighton Marina, 6-17 Tottenham Court Road, 62 Buckingham Gate, and a plethora of retail parks and mixed-use properties across the UK.

Land Securities has recently announced a pivot towards residential property, making the Real Estate Investment Trust one of the most diverse plays in the UK property market, with a portfolio spanning retail, office, and residential.

Underscoring operational progress, Landsec posted a solid half-year to September 2025, with EPRA EPS up 3.2% to 25.8p, driven by 5.2% like-for-like net rental income growth and a further 6% cut in overhead costs. The interim dividend rose 2.2% to 19.0p.

Recent guidance was encouraging. Full-year like-for-like income growth is now expected at 4-5%, up from the initial 3-4%, and EPS growth is guided to the top end of the 2-4% range.

More significantly, management has raised its medium-term EPS target from around 60p to 62p by FY30, implying a 4-4.5% CAGR from FY25’s 50.3p base.

That’s being driven by stronger retail income growth, overhead savings targeting the low £60m’s by FY27, and lower development capital commitments.

Wise shares rose on Monday after reporting another strong quarter, with cross-border volumes up 27% on a constant currency basis to £49.4bn in Q4 FY26, driven by a 22% year-on-year increase in active customers to 11.3m.

There was growth across the board with customer holdings rising 37% to £29.4bn, while card and other revenue climbed 29%, underscoring the company’s push to diversify beyond pure transfers.

The Wise Business unit posted eye-catching numbers, with active customers up 26% to 572,000 and volumes growing 35%.

Underlying income for the quarter came in at £435.3m, up 24% year-on-year. For the full year, cross-border volumes hit £181.7bn, a 25% increase, with underlying income rising 18% to £1.6bn on a reported basis. Active customers for the year reached 18.9m, up 21%.

“We are making good progress on building the network for the world’s money. Our infrastructure makes cross-border transactions cheaper and faster and, in January, we became one of the first payment institutions to be granted membership to Payments Canada, paving the way to direct access there,” said Kristo Käärmann, Co-founder and Chief Executive Officer.

“More and more people are using Wise at home or abroad for their everyday spending, for paying bills, for savings and investments. That’s why last month we formally launched our UK current account with a physical branch concept on Oxford Street in London.”

Wise continues to invest in pricing, with its cross-border take rate ticking down to 51bps from 53bps a year ago. The proportion of instant transfers also jumped to 75%, up from 65%. The company expects FY26 underlying PBT margin to land towards the top of its 13-16% guidance range, even after absorbing dual listing costs.

Touching on plans to shift its primary listing away from London, Wise confirmed it remains on track to complete its primary listing on Nasdaq on 11 May 2026, while maintaining a secondary listing on the London Stock Exchange.

Wise shares were 3% higher at the time of writing.

Innovative Eyewear (NASDAQ: LUCY) has picked up a Retailer’s Choice Award for its Lucyd Armor smart safety eyewear range at the National Hardware Show in Las Vegas, a prize now in its 60th year of recognising standout products in the hardware channel.

It’s a timely nod for the Tekcapital portfolio company, which has said the Armour range is its fastest-growing collection to date.

Offering something slightly different to other fashion-focused ranges, Lucyd Armor combines hands-free connectivity with proper eye protection, targeting industrial workers who need both, and its sporty design means it crosses over into everyday use, broadening the addressable market considerably.

This range is also supported by a favourable market backdrop. The US safety eyewear market, worth roughly $370–400 million in 2024, is forecast to surpass $650 million by 2033, growing at around 6–7% annually.

Meanwhile, the global smart eyewear segment is on a sharper trajectory, expected to climb from approximately $1 billion in 2024 to over $4 billion by 2030, implying a 25–30% compound annual growth rate.

Harrison Gross, CEO of Innovative Eyewear, said: “Lucyd Armor has been transformational since we launched it a year and a half ago, enabling our company to deliver highly functional smart eyewear for workforces around the world. I believe the product is a standout because it provides a unique mix of handsfree smart features, AI access, patented walky-talky functionality and of course vision correction and protection, with the required safety certifications for high impact workplace use.

“The hardware channel hasn’t witnessed many safety eyewear innovations of late, and I think that’s part of the reason Armor has been so well-received by thousands of workers around the world. True to our mission to Upgrade Your Eyewear®, Lucyd Armor offers significant connectivity and intelligent support features over traditional safety glasses. That’s why I believe it could become a global standard for safety eyewear.”

Lucyd shares were little changed in NASDAQ trading on Friday.

Eco Atlantic Oil & Gas has signed an agreement to farm out a 60% participating interest across all three of its offshore Namibian exploration licences to BP, handing over operatorship in the process.

The deal covers PEL97 (Cooper), PEL99 (Guy) and PEL100 (Tamar). Eco will retain a 25% interest in each, with NAMCOR holding 10% and local partners 5%.

Under the terms, Eco receives a $2.7m cash payment on completion. Crucially, BP will carry 100% of Eco’s costs, including its share of the NAMCOR and local partner carries, through the current exploration phase. The planned work programme includes seismic reprocessing on PEL97 and a 3D seismic survey of at least 3,000km² across PEL99 and PEL100.

The deal also includes a put option structure tied to drilling. If BP commits to an exploration well in the second renewal period from 2028, Eco can choose to transfer an additional 10% interest to BP in exchange for a full carry on its remaining 15% stake, capped at $21m per well per licence, up to a maximum of $63m across all three blocks.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, said: “This successful farm down of our Namibian Walvis Basin Licenses marks an incredible moment for Namibia, for Eco Atlantic and its shareholders. 

“This transaction is a clear demonstration of our strategy partnering with Supermajors and IOC’s, to derisk our portfolio while retaining material exposure to significant upside potential with very limited financial requirements from Eco.  Eco entered Namibia in 2011, with a firm belief of the Walvis basin subsurface potential, and we are proud to attract an IOC of BP’s calibre to further explore this prospective basin.  We look forward to continuing our excellent working relationship with BP’s dynamic and experienced team and welcome them to the Land of the Brave.

“I am extremely grateful to our Namibia country manager, Tironenn Kauluma, as well as my dedicated team and our legal advisors at Cliffe Dekker Hofmeyr, for their tireless efforts over the past few months in delivering this monumental transaction for Eco shareholders and our Namibian Stakeholders. We are also deeply appreciative of the ongoing support, guidance and cooperation we always have from the Petroleum Commissioner at the Ministry of Mines and Energy, her team, and the Upstream Petroleum Unit at the state house.”

Halma has snapped up California-based ophthalmic instruments maker Surgistar for $90m (circa £67m) in cash, adding it as a bolt-on to its existing healthcare subsidiary MicroSurgical Technology (MST).

Surgistar, which has been operating for more than 20 years, designs and manufactures surgical blades, cannulas and trephines used in eye surgery. The company’s highly automated production processes are a key part of its appeal, delivering consistent quality at scale, a natural complement to MST’s existing capabilities.

The deal, funded by Halma’s existing facilities, is part of the group’s strategy to build out its healthcare sector through targeted, complementary acquisitions.

Marc Ronchetti, Group Chief Executive of Halma, said: “Surgistar’s differentiated product range is highly complementary to MST’s and further strengthens Halma’s ophthalmic product offering. The acquisition enhances MST’s manufacturing capabilities and supports its long-term growth through MST’s existing direct and global channels. We are excited to see our existing companies expand their capabilities through bolt-on acquisitions and delighted to welcome Surgistar to Halma.”

Halma has long grown through acquisitions, making seven acquisitions in 2024/25, down from eight in 2023/2024.

Mercantile Ports and Logistics (LON: MPL) shares rose a further 118.2% to 1.2p while investors await a decision from the meeting of a consortium of banks to consider Mercantile’s debt proposal on Friday 10 April. One bank did not sanction an agreement for a one-time settlement of company debt with the consortium of banks. The court has told the Committee of Creditors holding the company debt to consider an offer to redeem 100% of outstanding debt. There are potential buyers interested in the port and logistics assets if they are claimed by the banks. An international oil and gas company is a potential provider of funds to help redeem the debt. The share price has more than trebled this week.

Atome (LON: ATOM) is in the final stages of negotiations for the funding of the Villeta fertiliser project in Paraguay. Definitive documentation with the equity consortium is expected by 17 April. The potential funders are likely to be at the IMF and World Bank spring meetings at that time. The share price rebounded 28.1% to 77.5p, which is the highest it has been since late 2024.

Eden Research (LON: EDEN) has completed a conditional placing taking the total raised in the recent fundraising to £10.8m at 4p/share. The cash will fund development of an additional fungicide for Late Blight and an insecticide to target spider mites, whitefly, aphids and thrips. The share price increased 14.6% to 3.15p.

Steppe Cement (LON: STCM) has increased cement sales in Kazakhstan in the first quarter of 2026 to 344,058 tonnes, from 276,217 tonnes in the same period last year. The average price was one-fifth higher at around $57/tonne. Market share increased to 16%. Capacity is being increased and the final estimated cost is $35m. The share price rose 10.5% to 21p.

FALLERS

Impax Asset Management (LON: IPX) published a disappointing quarterly update to assets under management. They fell 8% in the second quarter to £22.3bn, compared with the previous quarter, with net outflows in the quarter much higher than expected at £2bn. There was a small positive increase related to performance. Full year revenues are expected to be £109m to £113m and costs are being reduced. The share price slumped 25.55 to 93.55p, which is less than ten times prospective earnings.

Faron Pharmaceuticals (LON: FARN) says 70% of shares available in its offer to investors were taken up. The amount raised was €40.1m, or €32m after expenses, at €0.50/share. The cash will be used to fund “a randomised, 90-patient Phase II trial in frontline high risk myelodysplastic syndrome with bexmarilimab in combination with azacitidine as well as to accelerate the development of its lead asset bexmarilimab by providing it to up to five investigator-initiated trials”. The share price fell 11.2% to 43.5p.

Quantum Blockchain Technologies (LON: QBT) says a court has stopped enforcement of a €6m plus damages award against Sipiem relating to the Mediapolis business. The company has not been able to enforce the seizing of property of a former Sipiem director because he has declared bankruptcy. The liquidation of Mediapolis is being completed and a further distribution of €132,000 is expected to be received by the end of June. The share price dipped 6.85 to 0.48p.

Metals explorer Rockfire Resources (LON: ROCK) is continuing drilling to upgrade from an inferred resource to an indicated resource at the Molaoi zinc deposit in Greece. Strong germanium grades have been intersected in the southern zone. Copper and silver have also been identified in hole HMO-012, plus silver in hole HMO-013. Hole HMO-014 had the largest zinc values, but it caved and will be redrilled later. There are plans to buy a drilling rig. The share price declined 1.755 to 0.14p.