UK equities moved higher on Tuesday after reports suggested the United States, Iran and Oman were close to reaching an interim agreement that would reopen the Strait of Hormuz, easing concerns over disruption to global energy supplies and reducing fears of a broader regional conflict.
By 03:14 ET (07:14 GMT), the FTSE 100 had climbed 0.41%. Germany’s DAX gained 0.49%, while France’s CAC 40 added 0.12%. Sterling also strengthened, rising 0.08% against the US dollar to 1.3460.
According to Axios, citing a US official and a regional source, Iran’s leadership has completed its internal approval process, bringing Washington, Tehran and Muscat closer to announcing a 60-day interim agreement.
US President Donald Trump told Fox News that the strait would reopen “very soon,” adding that Iran would be “hit really hard” if it failed to honour the arrangement.
The proposed framework, according to Axios citing two regional sources and a US official, would route inbound Gulf shipping through a northern corridor in Iranian waters and outbound traffic through a southern route in Omani waters. No transit fees would apply during the temporary agreement, while naval mines in the central shipping lane would be cleared within 30 days. Qatar, Pakistan and Saudi Arabia are also involved in the mediation efforts.
Separately, US Central Command (CENTCOM) said the southern shipping lane through the Strait of Hormuz “remains free and open” and confirmed that US forces have escorted more than 1,000 vessels through the route over the past three months despite “unwarranted Iranian aggression.”
In commodity markets, Brent crude rose 0.77% to $79.97 a barrel, while US West Texas Intermediate crude edged 0.07% higher to $75.83. Gold also advanced, with futures climbing 1.8% to $4,226.51 an ounce and spot gold gaining 2.2% to $4,166.96.
UK corporate highlights
- Hiscox (LSE:HSX) increased its retail growth guidance after reporting a 10.1% rise in first-half insurance premiums.
- Beazley (LSE:BEZ) reported that first-half profit more than halved as elevated claims and softer market conditions weighed on earnings.
- Glencore (LSE:GLEN) posted a strong increase in first-half earnings, supported by its trading division, and confirmed plans to pursue an Australian stock market listing.
- Next (LSE:NXT) upgraded its full-year profit forecast after stronger-than-expected sales growth during the latest quarter.
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