The FTSE 100 rose 0.43% on Monday as oil prices declined amid developments surrounding potential diplomatic efforts to de-escalate the conflict between the United States and Iran.
As of 07:15 GMT, Germany’s DAX had gained 0.72%, while France’s CAC 40 advanced 0.70%. Sterling fell 0.16% against the US dollar to $1.3373.
Brent crude futures for November delivery declined 2% to $101.77 a barrel, while November West Texas Intermediate futures fell 2.13% to $94.03.
The movements came as investors assessed developments involving Iran and the United States, including conflicting reports on shipping activity through the Strait of Hormuz.
Iran’s Revolutionary Guards spokesperson Hossein Mohebbi said the United States “has been defeated in this war” and had failed to reopen the Strait of Hormuz, according to comments reported by local media.
Mohebbi also warned that further US military action would prompt Iran to deploy additional weapons capabilities.
Separately, Iranian lawmakers submitted legislation proposing withdrawal from the Nuclear Non-Proliferation Treaty, according to state-owned Press TV.
US envoy to the United Nations Mike Waltz indicated on social media platform X that negotiations remained possible if Iran returned to discussions in good faith.
Shipping data continued to present differing assessments of activity through the Strait of Hormuz.
Reuters counted 12 commodity vessels transiting the waterway over the weekend, compared with 35 during the preceding weekend.
The UK Maritime Trade Operations organisation reported independent tracking figures showing single-digit vessel movements in both directions, while figures linked to the US Navy indicated more than 30 transits per day.
Jefferies strategist Mohit Kumar identified Thursday’s scheduled meeting between US President Donald Trump and Chinese President Xi Jinping as an event for investors to monitor.
Kumar also suggested that early October could provide an opportunity for an interim arrangement between Washington and Tehran, although no agreement has been announced.
Elsewhere in Europe, investors continued to assess fiscal and political developments.
The Euro Stoxx index declined 1.4% on Friday, while French 10-year government bond yields increased by 14 basis points amid concerns about the country’s budget deficit, according to Jefferies.
The investment bank also noted that German Chancellor Friedrich Merz’s party had recorded its worst result in a state election.
In commodities, gold prices declined alongside oil. December gold futures fell 0.76% to $4,390.65 an ounce, while spot gold decreased 0.57% to $4,351.36.
UK Corporate News
Elixirr International (LSE:ELIX) reported a 25% increase in first-half revenue to £89.0 million, supported by growth in artificial intelligence-related services.
AI-related revenue rose 185% to £8.1 million, while adjusted EBITDA increased 29% to £27.6 million.
The consultancy maintained its outlook for full-year revenue and adjusted EBITDA, which it expects to be broadly in line with company-compiled market expectations.
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