UK equities traded modestly higher on Monday as investors assessed geopolitical developments in Ukraine and Iran alongside the latest OPEC+ production decision and a busy domestic news agenda. Market participants also kept a close watch on political developments ahead of a key NATO summit and fresh UK economic data.
As of 07:15 GMT, the FTSE 100 was up 0.26%. Germany’s DAX slipped 0.02%, while France’s CAC 40 gained 0.30%. Sterling eased 0.11% against the U.S. dollar to $1.3338.
Ukraine and Iran Remain in Focus
Russian President Vladimir Putin and U.S. President Donald Trump held a telephone conversation lasting almost 90 minutes on Sunday, according to Russia’s foreign ministry, marking their fourth discussion this year.
The ministry said Trump “reaffirmed his readiness to facilitate the earliest possible cessation of hostilities” in Ukraine and described the talks as “businesslike and highly constructive.”
Separately, Ukrainian President Volodymyr Zelensky said he had a “very good call” with Trump on Saturday, adding, “There is a real prospect to put an end to this war, and America’s resolve is decisive.” The discussions came ahead of a NATO summit opening in Turkey on Tuesday, which Trump is expected to attend.
Meanwhile, Iran began a 12-hour funeral procession in Tehran for the country’s late Supreme Leader, Ayatollah Ali Khamenei, marking the third day of national mourning.
His successor, Mojtaba Khamenei, has not appeared publicly since the 28 February airstrike that killed his father. Iranian officials have said he was injured in the attack and has communicated only through written statements. Public life across Tehran has been heavily disrupted during the mourning period, which is scheduled to conclude with Ayatollah Khamenei’s burial in Mashhad on Thursday.
UK Political and Oil Market Developments
In UK politics, Makerfield MP Andy Burnham, widely viewed as a potential successor to Prime Minister Keir Starmer, ruled out calling an early general election if he were to become prime minister.
“No. As I said in my speech on Monday, I’m going to work to the 2024 manifesto,” Burnham said in response to a question on Reddit. He also indicated he would seek to move Labour towards electoral reform in its next manifesto.
Conservative leader Kemi Badenoch criticised Burnham’s decision to answer questions on Reddit rather than holding a traditional media briefing, urging him to “face a proper press conference.”
Elsewhere, seven OPEC+ members—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman—agreed to increase combined oil production by 188,000 barrels per day from August, marking the fifth consecutive monthly output increase.
Brent crude futures for September delivery fell 0.42% to $71.82 a barrel, while U.S. WTI crude for August delivery slipped 0.32% to $68.47. Gold futures for August rose 0.91% to $4,162.51 an ounce, although spot gold declined 0.60% to $4,150.56.
UK Corporate Round-Up
easyJet (LSE:EZJ) agreed in principle to support a proposed £5.5 billion takeover by U.S. investment firm Castlelake at £6.90 per share, a transaction that could significantly reshape the European airline sector.
Ocado (LSE:OCDO) confirmed that founder Tim Steiner will remain chief executive until the start of 2028 before moving into a Founder role through 2029 as part of a planned leadership succession.
ITV (LSE:ITV) agreed to sell its Media and Entertainment division to Sky in a deal worth up to £1.6 billion, allowing ITV Studios to become a standalone content production business while adding Love Productions to its portfolio.
Separately, the Society of Motor Manufacturers and Traders reported that UK new car registrations increased by around 11% year on year in June, with battery electric vehicles accounting for 30% of all new registrations.
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