The FTSE 100 is set to open lower following the collapse of US-Iran nuclear negotiations. Market analysts are pointing to heightened geopolitical tensions as the primary driver behind the anticipated decline in UK blue-chip stocks. The failure of talks, which aimed to revive the 2015 nuclear deal, has injected fresh uncertainty into global markets already grappling with inflationary pressures and monetary policy tightening.

The breakdown in negotiations comes after months of diplomatic efforts to curb Iran's nuclear program in exchange for sanctions relief. Investors are particularly concerned about potential disruptions to oil supplies, given Iran's position as a major producer. The FTSE 100, which includes several energy companies, is especially vulnerable to such developments. Oil prices have already spiked in response to the news, with Brent crude climbing above $90 per barrel.

Market strategists warn that the failed talks could lead to increased volatility in the coming sessions. The FTSE 100 had been trading near multi-year highs before the announcement, buoyed by strong corporate earnings and optimism about economic recovery. However, the geopolitical setback threatens to derail this momentum, with analysts suggesting that investors may shift towards safer assets such as government bonds and gold.