British equities opened with little direction on Monday, fluctuating between gains and losses as geopolitical uncertainty weighed on sentiment. Iran has put forward a proposal to reopen the Strait of Hormuz and de-escalate its conflict with the United States, though markets remain cautious as Washington has yet to indicate whether it will engage.
By 07:14 GMT, the FTSE 100 was marginally lower by 0.01%, while sterling traded broadly flat against the dollar at 1.3542. In Europe, the DAX rose 0.3% and the CAC 40 gained 0.3%.
According to Axios, Iran’s proposal—delivered to Washington through Pakistani intermediaries—would reopen the vital shipping route and either extend or make permanent a ceasefire, with nuclear negotiations postponed to a later stage.
The initiative attempts to bypass a major sticking point, as divisions persist within Iran’s leadership over potential nuclear concessions, particularly in response to U.S. demands for Tehran to halt uranium enrichment for at least a decade and export its stockpile.
The White House confirmed it had received the proposal but gave no indication of further engagement, stating the US “will only make a deal that puts the American people first.”
Donald Trump is expected to chair a Situation Room meeting on Iran later on Monday with senior national security and foreign policy officials.
Iranian Foreign Minister Abbas Araghchi led a series of diplomatic efforts over the weekend, travelling between multiple capitals. He visited Islamabad twice, briefing mediators from Pakistan, Egypt, Turkey, and Qatar, and relayed the proposal to Washington via Pakistan.
He then travelled to Muscat for discussions with Omani officials regarding safe transit through the Strait of Hormuz, before heading to St. Petersburg on Monday for talks with Vladimir Putin, focusing on coordination in response to the US-Israeli campaign.
Trump signalled limited urgency, stating Iranian leaders “can come to us or they can call us,” after cancelling a planned Islamabad visit by his envoys. Meanwhile, CENTCOM reported that 38 vessels turned back from Iranian waters over the weekend.
UK Roundup
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