The FTSE 100 fell on Tuesday after a volatile session, reversing Monday’s 0.8% gain as investors remained cautious about efforts to restore energy flows through the Strait of Hormuz. Brent crude hovered near $100 a barrel. President Donald Trump said he expected the US to reach a deal with Iran after the election and that oil flows had increased since the conflict began, adding that prices were likely to fall sharply once it ends. HSBC, Barclays and Lloyds declined, while Rolls-Royce and BAE Systems also fell. Kingfisher rose 12% after increasing its profit guidance on strong momentum at Screwfix, Poland and Iberia, and Smiths Group gained almost 8% on higher revenue and growth expectations at John Crane and Flex-Tek. A CBI survey showed factory orders at their highest level since July 2023, while August government borrowing reached £18.3 billion, exceeding expectations of £15.5 billion.