Source: Sharecast
The FTSE 100 was called to open down around 17 points. At 0720 BST, Brent crude was 0.3% lower at $91.14 a barrel.
Summing up the latest events in the Middle East, Danske Bank said: "Iran's Revolutionary Guards struck a US base in Jordan and 21 other Gulf targets in retaliation for US attacks near the Strait of Hormuz, which were themselves triggered by the alleged downing of a US helicopter. The escalation raises serious doubts over a peace deal and keep energy markets on edge."
Away from the Middle East conflict, investors will be turning their attention to the US consumer price index for May, which is due at 1330 BST.
Ipek Ozkardeskaya, senior analyst at Swissquote, said the CPI data will be important and closely watched.
"It will be the last major data point before Kevin Warsh heads into his first FOMC meeting as Fed chair," she said. "As for the market reaction, a stronger-than-expected set of figures could echo what we saw on Friday following the US jobs data, sending bond yields higher and stock prices lower. The moves could be just as sharp, depending on the data. The market is so crowded with bulls right now that even a small fear could turn into a nightmare.
"Figures in line with expectations, or ideally softer than expected, on the other hand, could help avoid another risk selloff, but will hardly reassure those who watch the news beyond technology and AI regarding what’s to come."
In corporate news, WH Smith cut profit guidance for the second time this year as war in the Middle East curtailed travel and weighed on consumer demand.
The retailer now expects full-year headline profits before tax and non-underlying items to come in between £75m and £90m, down from previous guidance for between £90m and £105m.
The chain, which has shops in airports, rail stations and hospitals, also announced plans for a capital raise representing 20% of its share capital.
Flexible office space provider Workspace posted a softer set of full‑year numbers, with earnings hit by lower rental income and a further drop in property valuations.
Workspace said net rental income fell 7.1% to £113.4m in the year to 31 March, while trading profit after interest declined 9.4% to £60.5m. As a result, Workspace reported a £120.5m pre‑tax loss, driven largely by valuation movements across its portfolio.
Vodafone Greece and Public Power Corporation have entered into heads of terms to create a potential 50:50 joint venture made up of their respective fibre to the home and wholesale fibre businesses in Greece.
The two firms’ fibre businesses currently cover more than a combined 1.6 million homes and the joint venture would intend to provide wholesale open access to internet service providers in Greece.
In a joint statement, they said the deal was subject to completion of due diligence and regulatory approvals with no certainty at this stage that a transaction would be agreed.