The FTSE 100 rose 0.50% on Friday as investors assessed developments in US-Iran talks alongside reduced shipping traffic through the Strait of Hormuz and further regional security developments.
As of 07:13 GMT, Germany’s DAX was up 0.66% and France’s CAC 40 had gained 0.40%.
Sterling was little changed against the US dollar at $1.3223, down 0.01% during the session.
US and Iran Discuss Phased Framework
Iranian President Masoud Pezeshkian, speaking to the media on the sidelines of the UN General Assembly in New York, said Tehran wanted Washington to return to the Memorandum of Understanding “before the midterms.”
In a separate interview with Fox News, Pezeshkian said “the framework was agreed upon” and that Iran “never sought anything more” than its entitlements under international law.
According to sources cited by Reuters, US and Iranian negotiators have been discussing a phased framework that would involve Tehran reopening the Strait of Hormuz in exchange for Washington lifting its economic blockade.
No final agreement was reported in the supplied information.
Strait of Hormuz Traffic Declines
Shipping activity through the Strait of Hormuz remained below recent levels.
Reuters reported that nine vessels transited the waterway on Thursday, compared with a rolling 10-day average of approximately 18. Some vessels were believed to be operating with their transponders switched off.
The UAE also suspended flights by Iranian carriers on Thursday, joining Oman, Iraq, Azerbaijan, Georgia and Turkmenistan in implementing new US secondary sanctions relating to Iranian aviation.
US Senate Rejects War Powers Resolution
In Washington, the US Senate voted 50-49 against a Democratic resolution that would have restricted President Donald Trump’s authority to continue the conflict with Iran.
Four Republican senators voted in support of the resolution.
Separately, Saudi Arabia, Türkiye and Pakistan announced plans for an urgent chiefs-of-staff meeting under the Mecca Joint Defence Agreement following Houthi strikes on Taif, Yanbu and military sites near the Saudi-Yemeni border.
Qatar described the attacks as “a blatant violation of Saudi sovereignty.”
Saudi Foreign Minister Prince Faisal bin Farhan also chaired a trilateral ministerial meeting during the UN General Assembly at which ministers affirmed Saudi Arabia’s right to self-defence under Article 51 of the UN Charter.
UK Foreign Secretary Meets Iranian Counterpart
UK Foreign Secretary Ed Miliband met Iranian Foreign Minister Abbas Araghchi in New York.
According to a Foreign Office statement reported by Sky News, Miliband raised the importance of reopening the Strait of Hormuz and referred to the UK’s “unwavering resolve to combat threats from Iranian-linked groups on UK soil.”
Oil Prices Fall While Gold Advances
Brent crude declined 0.63% to $105.95 a barrel, while West Texas Intermediate fell 1.4% to $93.32.
Gold prices moved higher, with futures up 0.32% at $4,311.50 and spot gold gaining 0.06% to $4,276.23.
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