The FTSE 100 fell sharply on Tuesday, as did UK bonds, with investors wary ahead of local elections and amid ongoing uncertainty in the Middle East.

The FTSE 100 closed down 144.82 points, 1.4%, at 10,219.11.

The FTSE 250 ended down 87.80 points, 0.4%, at 22,443.81, but the AIM All-Share rose 2.62 points, 0.3%, at 799.28.

After Monday’s sharp gains, when London financial markets were closed, the oil price cooled a touch with the fragile ceasefire between the US and Iran barely holding.

US rhetoric remained defiant, with US secretary of war, Pete Hegseth ,stating Tuesday that any attack on commercial shipping by Iran will be met with a “devastating” response.

Mr Hegseth told reporters: “We’re not looking for a fight.…