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It’s been a volatile few weeks for the stock market, thanks to the war in Iran. Yet the FTSE 100 hasn’t collapsed. There was a correction, a drop of 10%, but no full-blown crash. It’s even clawed much of that back.
The blue-chip index closed at 10,667 on Friday (17 April). That’s just 2.2% below its all-time high of 10,910, reached on 27 February, the day before the conflict began. That’s a remarkable show of resilience. Can it go ont o break 11,000 from here?
This has been an odd crisis. We’ve had dire warnings of the biggest oil shock in history. Yet investors have been perfectly happy to take Donald Trump at his word that everything’s under control.
The FTSE 100 could fly
On Friday, they got what they wanted. Trump confirmed the Strait of Hormuz is open. The FTSE 100 jumped, while the S&P 500 hit a fresh record of 7,126 after rising 1.2%. We’ve seen this a lot lately. Geopolitical shocks trigger a sell-off, then bargain hunters pile in. The Covid slump in 2020, the Ukraine invasion in 2022 and US tariff threats in 2025 all fit that pattern.
This confirms our firm view at The Motley Fool, that selling in a panic rarely pays. Instead, investors should grit their teeth, and take the opportunity to snap up cut-price shares. It isn’t easy though, when the headlines scream catastrophe. Plenty will have waited for even lower prices and missed the bounce.
So what happens on Monday? The rally could continue. Or it might well reverse, following reports that Iranian gunboats are targeting shipping in the Strait of Hormuz. Either way, investors should find plenty of bargain stocks out there. To my surprise, cigarette maker Imperial Brands (LSE: IMB) is suddenly one of them.
Imperial Brands shares look good value
Tobacco stocks have been among the best FTSE 100 performers of the millennium. That’s extraordinary, given the steady decline in smoking rates across the West. Imperial Brands, like FTSE 100 rival British American Tobacco, has used its branding power to grab a bigger share of a shrinking market, while moving into alternatives such as vapes. And it’s kept investors sweet with a steady stream of rising dividends.
Its shares fell hard after Tuesday’s underwhelming trading update. Imperial Brands reported a decent start to its 2026 financial year and stuck to guidance of 3%–5% growth in underlying operating profit. Yet investors fixated on slippage in its Next Generation Products portfolio, and weaker market share in key regions.
That points to tougher conditions ahead but the reaction still feels harsh. Imperial Brands is the FTSE 100’s biggest faller over the last month, down more than 13.5%. Over 12 months, it’s slipped 6.5%. That leaves it looking good value though.
Imperial Brands now trades on a modest price-to-earnings ratio of 8.86, while the yield has crept up to a juicy 5.77%. Tobacco stocks aren’t for everyone, and they’re under constant regulatory threat. But at this price, and with that income, it still looks worth considering.
There’s plenty more value left in the FTSE 100 and that’s unlikely to change. Whatever happens in the next few volatile days.
