The FTSE 100 moved higher in early trading on Wednesday as oil prices declined following renewed diplomatic contact between the U.S. and Iran.
The UK benchmark was up 0.36% as of 07:15 GMT. Germany’s DAX gained 0.13%, while France’s CAC 40 advanced 0.36%.
Sterling declined 0.25% against the U.S. dollar to $1.3312.
The moves followed talks involving U.S. and Iranian representatives on the sidelines of the United Nations General Assembly in New York. U.S. Special Envoy Steve Witkoff said the discussions took place through mediators who moved between the two delegations.
U.S. and Iran Hold Talks in New York
U.S. President Donald Trump described the three-hour discussions as a “very good” meeting.
Witkoff said mediators “shuttled between the two sides throughout the day,” and described the round as “successfully completed.” A further meeting was expected within days.
Iran communicated its conditions through Qatari mediators, according to Foreign Ministry spokesman Esmaeil Baghaei. The conditions included an end to hostilities, removal of the U.S. naval blockade and the release of seized assets.
An Iranian Revolutionary Guard Corps spokesman separately rejected negotiations and called for Iran to prepare for “all likely scenarios.”
Saudi Arabia also began restoring crude supply through a Red Sea pipeline.
Shipping through the Strait of Hormuz remained below recent levels. Three commodity vessels transited the waterway on Tuesday, compared with a 10-day moving average of approximately 15, according to data cited by Reuters.
Jefferies Comments on U.S.-Iran Outlook
Jefferies strategist Mohit Kumar said the first weeks of October could provide “the sweet spot for some kind of fudge between US and Iran.”
Kumar said Iran would not have wanted an agreement substantially ahead of the U.S. midterm elections because of the potential political implications, while suggesting an agreement closer to the vote could coincide with greater willingness from Washington to make concessions.
Jefferies said it remained constructive on markets and said that if geopolitical tensions eased and oil moved towards $80 to $85 a barrel, conditions could support “a rally in risky assets between now and year end.”
Brent Crude Falls Below $99
Brent crude futures declined 0.41% to $98.84 a barrel, while West Texas Intermediate fell 1.01% to $89.54.
Gold prices also moved lower. December gold futures declined 0.31% to $4,362.97 an ounce, while spot gold fell 0.75% to $4,324.98.
Burnham Addresses Middle East at UN
UK Prime Minister Andy Burnham addressed the Israel-Palestinian conflict during the UN General Assembly in New York.
Burnham said Britain would “do all we can” to see Israelis and Palestinians “living side by side in peace and security.”
He also said Israeli actions in Gaza and the West Bank were unjustifiable, adding: “We will not stand by as the horrific suffering continues to grow.”
JD Sports Maintains Full-Year Guidance
JD Sports (LSE:JD.) maintained its full-year profit guidance after reporting first-half margins and profit before tax and adjusting items ahead of analyst expectations.
The sportswear retailer reported profit before tax and adjusting items of £282 million, compared with a consensus estimate of £279 million.
JD maintained its full-year guidance for profit before tax and adjusting items of between £700 million and £800 million.
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