UK equities traded higher on Friday as renewed diplomatic efforts between the United States and Iran helped calm concerns over tensions in the Middle East. Investors also continued to monitor the takeover battle for easyJet (LSE:EZJ), after Apollo Global (NYSE:APO) emerged with a higher £5.7 billion proposal.
The FTSE 100 gained 0.23% by 03:25 ET (07:25 GMT). Elsewhere in Europe, Germany’s DAX advanced 0.24%, while France’s CAC 40 rose 0.21%. Sterling strengthened 0.14% against the U.S. dollar to trade at $1.3426.
U.S. President Donald Trump said Washington would respond to Iranian-linked attacks on commercial shipping in the Strait of Hormuz while reiterating that Iran “can never possess a nuclear weapon.”
Although the latest U.S. military action drew domestic criticism and heightened regional tensions, officials stressed that diplomatic engagement with Tehran remained a priority.
Regional mediators, including Qatar, Saudi Arabia, Pakistan, Turkey and Egypt, subsequently intensified efforts to revive U.S.-Iran nuclear negotiations. At the same time, the United States and Israel reaffirmed their close security partnership.
Iran denied allegations relating to activity in the Strait of Hormuz and maintained that its nuclear programme is intended solely for peaceful purposes, highlighting the continuing divide between military developments and diplomatic negotiations.
The country also concluded several days of state funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei, whose burial at the Imam Reza shrine in Mashhad brought the official mourning period to a close amid ongoing regional uncertainty.
In UK politics, Andy Burnham secured 322 nominations from Labour MPs on Thursday, leaving him just one nomination short of the 323 required to prevent a challenger from entering the leadership contest.
The former Greater Manchester mayor is widely expected to be confirmed as Labour leader next week before taking office as prime minister on 20 July.
Commodity markets moved lower, with Brent crude falling 0.84% to $75.66 per barrel and WTI crude down 0.78% at $71.52. Gold futures declined 0.44% to $4,122.40 an ounce, while spot gold slipped 0.25% to $4,113.65.
UK Market Round-up
Apollo Global overtook Castlelake in the contest for easyJet (LSE:EZJ), agreeing in principle to a £5.7 billion takeover proposal that values the airline at £7.15 per share.
MJ Gleeson (LSE:GLE) said full-year profit is expected to meet market expectations but cautioned that geopolitical uncertainty and potential changes to UK government policy could affect its outlook for fiscal 2026.
Vodafone (LSE:VOD) remained in focus after UAE telecoms group e& agreed to sell its 16.3% holding in the company to Vega, the investment vehicle backed by Xavier Niel, in a transaction worth $5.95 billion at a 13% premium.
Hays (LSE:HAS) said it expects fiscal 2026 operating profit to come in at the upper end of market forecasts, as cost-saving initiatives continue to offset subdued recruitment activity.
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