ADVFN UK Market News

Category: Market Summary

  • Wall Street futures slip as oil rebounds amid renewed Middle East tensions: Dow Jones, S&P, Nasdaq

    Wall Street futures slip as oil rebounds amid renewed Middle East tensions: Dow Jones, S&P, Nasdaq

    U.S. stock futures traded modestly lower early Thursday, signaling a weaker start for Wall Street after markets closed slightly higher in the previous session despite uneven trading throughout the day.

    Investor sentiment was pressured by a recovery in oil prices as geopolitical concerns resurfaced following renewed military activity involving the United States and Iran.

    U.S. crude futures rose more than 2% after suffering losses of over 8% during the previous two trading sessions.

    The rebound in oil came after reports that the United States carried out another round of “self-defense strikes” in southern Iran, while Tehran reportedly responded by targeting a U.S. military base.

    “Investors are still broadly positioned for a de-escalation scenario in the Middle East, but recent headlines are a reminder that the path toward any agreement remains fragile,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

    Futures trimmed some of their declines after fresh inflation data suggested price pressures in the U.S. were slightly softer than expected in April.

    Data from the Commerce Department showed the personal consumption expenditures (PCE) price index increased 0.4% in April following a 0.7% rise in March. Economists had forecast a 0.5% gain.

    On a yearly basis, PCE inflation accelerated to 3.8% from 3.5% in March, matching analyst projections.

    Core PCE, which excludes food and energy costs, rose 0.2% in April after increasing 0.3% in the prior month. Economists had expected another 0.3% increase.

    Annual core inflation edged up to 3.3% from 3.2%, also in line with market expectations.

    Separately, Labor Department figures showed initial claims for unemployment benefits in the United States increased slightly more than analysts had anticipated in the week ended May 23.

    On Wednesday, U.S. markets delivered modest gains despite a relatively subdued session. The Dow Jones Industrial Average outperformed and closed at another record high, joined by both the Nasdaq and S&P 500.

    The Dow advanced 182.60 points, or 0.4%, to finish at 60,644.28. The Nasdaq Composite rose 18.55 points, or 0.1%, to 26,674.73, while the S&P 500 added 1.24 points to close at 7,520.36.

    The uneven market action reflected lingering uncertainty among investors following the recent rally in equities.

    Traders also remained focused on diplomatic developments involving the United States and Iran, with many market participants still optimistic that some form of agreement could eventually be reached.

    Expectations that tensions could ease had previously weighed on oil markets, contributing to a drop of more than 5% in U.S. crude futures earlier in the week.

    Speaking from the White House, President Donald Trump said Iran is seeking a deal but added that Washington remains dissatisfied with the offers presented so far. He also stressed that the Strait of Hormuz should remain accessible to all countries.

    Secretary of State Marco Rubio stated that the United States would give diplomacy “every chance to succeed” while reiterating that President Trump retains alternative options.

    Oil prices remained volatile even after the White House denied reports that Iranian state television had obtained a draft proposal outlining an unofficial framework agreement between Washington and Tehran.

    Reuters reported that the proposal would require Iran to restore commercial shipping traffic through the Strait of Hormuz to pre-conflict levels within one month.

    Sector performance was mixed during Wednesday’s trading session. Airline stocks continued their recent rally, with the NYSE Arca Airline Index climbing 2%.

    Telecommunications shares also performed well, as the NYSE Arca North American Telecom Index gained 1.6%.

    Technology hardware, housing, and retail stocks also posted notable gains.

    Meanwhile, oil service companies came under pressure alongside weaker crude prices, dragging the Philadelphia Oil Service Index down 3.3%.

    Gold-related shares also moved sharply lower after a steep decline in bullion prices, with the NYSE Arca Gold Bugs Index falling 3.3%.

  • European markets retreat as renewed U.S.-Iran strikes push oil prices higher: DAX, CAC, FTSE100

    European markets retreat as renewed U.S.-Iran strikes push oil prices higher: DAX, CAC, FTSE100

    European equities traded lower on Thursday after fresh military strikes involving the United States and Iran fueled concerns over rising energy costs and renewed inflationary pressure across global markets.

    The U.K.’s FTSE 100 Index declined 1%, while France’s CAC 40 and Germany’s DAX Index each fell around 0.6%.

    Investor sentiment weakened after the U.S. carried out additional self-defense strikes in southern Iran, while Tehran reportedly launched attacks targeting a U.S. air base. The escalation pushed Brent crude prices nearly 3% higher to around $97 per barrel.

    Airline stocks came under pressure as higher oil prices raised concerns about increasing fuel costs and weaker profitability for the sector.

    Among individual movers, shares of Johnson Matthey (LSE:JMAT) declined after the British specialty chemicals company announced an agreement to acquire U.S.-based emissions catalyst producer CORMETECH in a cash deal valued at $360 million on an enterprise-value basis.

    Energy company SSE (LSE:SSE) also traded lower after reporting a 5% decline in adjusted earnings per share for the financial year ended March 31, 2026.

    BT (LSE:BT.A) shares dropped following reports that the British government would oppose any effort by Sunil Bharti Mittal to increase his ownership stake in the telecommunications group beyond 25%.

    Meanwhile, semiconductor-related stocks outperformed after Soitec (EU:SOI) reported annual sales that exceeded market expectations.

    The positive read-through lifted shares of sector peers STMicroelectronics (BIT:STMMI) and Infineon (TG:IFX), both of which posted gains during the session.

  • Wall Street Futures Weaken as Renewed U.S.-Iran Conflict Clouds Market Outlook: Dow Jones, S&P, Nasdaq

    Wall Street Futures Weaken as Renewed U.S.-Iran Conflict Clouds Market Outlook: Dow Jones, S&P, Nasdaq

    U.S. equity futures traded lower on Thursday, while oil prices advanced, after a fresh round of military strikes between the United States and Iran reignited concerns over stability in the Gulf and reduced optimism surrounding a possible peace agreement. Investors were also focused on upcoming U.S. inflation data closely watched by the Federal Reserve.

    At 03:37 ET, futures tied to the Dow Jones Industrial Average were down 53 points, or 0.1%. S&P 500 futures declined 11 points, also down 0.1%, while Nasdaq 100 futures lost 99 points, equivalent to 0.3%.

    The weaker tone followed a relatively positive session on Wall Street the previous day, when major indices managed modest gains amid lingering expectations that diplomatic talks between Washington and Tehran could still progress.

    Analysts at Vital Knowledge said markets continue to price in the possibility that a resolution to the conflict may emerge soon. However, sentiment deteriorated after the White House rejected as “a complete fabrication” reports aired by Iranian state television regarding an alleged draft Memorandum of Understanding.

    Consumer Shares Hold Up While Energy and Tech Stocks Lose Momentum

    Earlier support for equities had come from softer Brent crude prices and stronger-than-anticipated earnings from retailers including Abercrombie & Fitch and Bath & Body Works.

    Vital Knowledge analysts said those developments, together with what they described as “sanguine” commentary from companies attending a major investor conference, helped support consumer discretionary stocks.

    At the same time, energy stocks came under pressure, while investors locked in gains from several high-performing technology shares that had rallied sharply in recent weeks.

    Escalating Military Action Raises Concerns Over Ceasefire Durability

    Geopolitical tensions intensified again after reports emerged that the U.S. military conducted additional strikes inside Iran on Wednesday following Iranian drone attacks against commercial shipping in the Strait of Hormuz.

    According to the Wall Street Journal, citing officials familiar with the situation, U.S. forces destroyed a drone and targeted a drone-control facility near the Iranian port city of Bandar Abbas.

    A U.S. official told Reuters that the operations were “measured, purely defensive and intended to maintain” the fragile ceasefire currently in place.

    Iran’s Islamic Revolutionary Guard Corps later claimed responsibility for strikes against a U.S. military base and warned that any additional attacks would trigger retaliation.

    Meanwhile, Kuwait’s military confirmed that it had intercepted incoming drones and missiles, ending a period of relative calm that had lasted for several weeks.

    Oil Prices Advance as Supply Risks Remain Elevated

    Efforts to secure a diplomatic solution to the conflict continued but failed to produce an immediate breakthrough, with negotiations still hindered by disagreements over Iran’s nuclear programme and tensions surrounding the Strait of Hormuz.

    Against that backdrop, Brent crude climbed 2.8% to $96.95 per barrel. Although prices remained below the psychologically important $100 level, they continued to trade significantly above pre-conflict levels.

    Disruptions around the Strait of Hormuz have fuelled concerns about global energy supplies, helping to drive oil prices higher and increasing fears of renewed inflationary pressure worldwide. Roughly one-fifth of global oil and liquefied natural gas shipments pass through the strategic waterway.

    Investors Await Key U.S. Inflation Reading

    Attention is now turning toward the release of the U.S. personal consumption expenditures (PCE) price index for April, one of the Federal Reserve’s preferred measures of inflation.

    Economists expect annual headline PCE inflation to accelerate to 3.8% from 3.5%, while the monthly reading is forecast to ease to 0.5% from 0.7%.

    Core PCE inflation, which excludes food and energy prices, is projected to edge up to 3.3% year-on-year while remaining unchanged month-on-month at 0.3%.

    Recent remarks from Federal Reserve officials have highlighted growing divisions within the central bank over the future direction of interest rates, particularly amid concerns about the inflationary impact of rising energy costs.

    Markets are increasingly pricing in the possibility that the Fed and other major central banks may need to resume rate hikes if inflation pressures continue to build.

    Musk Clarifies Terms of SpaceX-Anthropic Computing Partnership

    Separately, Elon Musk said Thursday evening that SpaceX’s agreement with artificial intelligence startup Anthropic to provide computing capacity is currently based on a short-term arrangement rather than a multi-year commitment.

    Earlier disclosures from SpaceX had suggested the agreement would give Anthropic access to computing resources at the Colossus data centre through May 2029.

    Responding to social media commentary, Musk said “SpaceX has not committed to leasing Colossus for years, although it’s possible that may be what happens.”

    He added that the deal currently consists of a 180-day lease with a 90-day mutual cancellation clause thereafter. According to Musk, SpaceX specifically requested the shorter-term structure to preserve flexibility in case the company later requires additional internal computing resources.

  • European Markets Retreat as Gulf Conflict Intensifies: DAX, CAC, FTSE100

    European Markets Retreat as Gulf Conflict Intensifies: DAX, CAC, FTSE100

    European equities opened lower on Thursday as renewed military tensions in the Gulf raised concerns over the stability of the fragile ceasefire between the United States and Iran, while also clouding prospects for a broader diplomatic agreement between the two countries.

    At 07:02 GMT, the pan-European Stoxx 600 index had declined 0.4%. Germany’s DAX fell 0.5%, France’s CAC 40 slipped 0.4%, and the FTSE 100 in London dropped 0.7%.

    Fresh Military Strikes Renew Investor Concerns

    Investor sentiment weakened after reports that the U.S. military launched additional strikes inside Iran on Wednesday, following Iranian drone attacks targeting commercial vessels in the Strait of Hormuz.

    According to the Wall Street Journal, citing officials familiar with the matter, U.S. forces destroyed a drone and targeted a drone-control facility near the southern Iranian port city of Bandar Abbas.

    Iran’s Islamic Revolutionary Guard Corps later stated that it had retaliated by striking a U.S. military base and warned that any future attacks would trigger further responses.

    Diplomatic Efforts Continue Without Breakthrough

    Despite the latest escalation, diplomatic discussions aimed at ending the conflict continued, although negotiators failed to secure an immediate breakthrough in talks surrounding the nearly three-month-long crisis.

    Elsewhere in the region, Kuwait’s military reported intercepting incoming missiles and drones, ending what had previously been a relatively calm period lasting several weeks without direct attacks.

    Oil Prices Climb on Supply Concerns

    Energy markets reacted to the growing instability, with Brent crude futures rising 2.6% to $96.72 per barrel.

    Although oil prices remained below the symbolic $100-per-barrel level, they continue to trade significantly above levels seen before the conflict began.

  • FTSE 100 Falls as Renewed U.S.-Iran Attacks Undermine Ceasefire Optimism

    FTSE 100 Falls as Renewed U.S.-Iran Attacks Undermine Ceasefire Optimism

    British equities moved lower on Thursday, tracking declines across European markets after a renewed exchange of military strikes between the United States and Iran weakened hopes for a diplomatic breakthrough in the Middle East. Investor sentiment was also pressured by warnings from the European Central Bank that energy-driven inflation risks may remain elevated for longer than markets currently expect.

    By 07:26 GMT, the FTSE 100 had dropped 0.92%, while Germany’s DAX declined 0.34% and France’s CAC 40 slipped 0.41%. Sterling also weakened slightly, falling 0.18% against the U.S. dollar to $1.3402.

    Fresh Military Escalation Raises Regional Tensions

    Market anxiety intensified after the U.S. military confirmed it had carried out new defensive strikes near Bandar Abbas on Wednesday. According to U.S. officials, the operation targeted a ground control station believed to be preparing drone launches against commercial and military vessels operating in the Strait of Hormuz.

    Iran’s Revolutionary Guards responded early Thursday, claiming they had struck the U.S. air base used to launch the attack. Kuwait later reported that its air defence systems had intercepted missiles and drones, marking one of the most direct exchanges between the two sides in recent days.

    Diplomatic Progress Overshadowed by Conflict

    The latest military escalation overshadowed earlier signs that diplomatic efforts might be gaining traction.

    Speaking during a Cabinet meeting, U.S. President Donald Trump said Iran was “negotiating on fumes,” while adding, “maybe we have to go back and finish it, maybe we don’t.”

    Secretary of State Marco Rubio also indicated there had been “progress and interest” toward a possible agreement, stressing that diplomacy remained Washington’s preferred course of action.

    Meanwhile, the White House dismissed Iranian state television reports claiming that a draft “Islamabad Framework” agreement existed under which Tehran would oversee shipping transit through the Strait of Hormuz, describing the report as “a complete fabrication.”

    Tehran Maintains Hard-Line Position

    Further uncertainty emerged from comments made by senior Iranian officials.

    Iran’s Supreme National Security Council stated that the country’s enriched uranium stockpile remained outside the scope of negotiations, while a senior Iranian lawmaker warned that even a U.S. agreement “would not mean the end of the war.”

    Deputy foreign minister Ali Bagheri Kani also reiterated demands that all frozen Iranian assets be returned “fully and unconditionally,” a condition that President Trump has already rejected.

    ECB Warns Energy Inflation Could Persist

    Adding to investor concerns, ECB chief economist Philip Lane warned on Thursday that the energy shock linked to Middle East tensions could continue affecting inflation even if the conflict is resolved relatively quickly.

    Speaking at a conference hosted by the Bank of Japan and its affiliated think tank in Tokyo, Lane cautioned about potential “second-round effects” as countries seek to rebuild energy reserves and diversify supply chains.

    Financial markets are currently pricing in two additional ECB interest rate hikes, while expectations for a third increase remain roughly balanced.

  • Market Open: SSE Infrastructure Spending, Johnson Matthey Cash Flow

    Market Open: SSE Infrastructure Spending, Johnson Matthey Cash Flow

    FTSE 100 falls as Gulf tensions lift Brent crude, while SSE boosts infrastructure investment and Johnson Matthey beats cash flow estimates.

    Market Overview

    European markets traded lower amid renewed geopolitical tensions in the Gulf region after reports of fresh US-Iran strike exchanges weakened hopes of a ceasefire. The FTSE 100 fell 0.80 per cent to 10,406.44, while the DAX slipped 0.03 per cent and the S&P 500 lost 0.31 per cent. The Nasdaq also moved lower as investors monitored escalating tensions alongside concerns over energy supply disruption and broader global growth risks.

    Commodity markets reflected the heightened uncertainty, with Brent crude climbing above $94 per barrel on fears surrounding the Strait of Hormuz and supply flows. Gold remained supported by demand for defensive assets, while Bitcoin weakened against sterling as broader risk appetite softened. Sterling traded weaker against most major currencies, with investors also assessing the outlook for inflation and central bank policy amid rising energy prices.

    Market Numbers

    FTSE 100: Down (-0.80%), 10,406.44
    CAC40: Up (0.43%), 8,207.890
    DAX: Down (-0.03%), 25,177.80
    NASDAQ: Down (-0.36%), 29,880.0
    S&P 500: Down (-0.31%), 7,515.0

    In the Headlines

    Infrastructure Expansion – SSE (LSE:SSE)
    SSE accelerated infrastructure spending plans to support long-term growth tied to the energy transition, with investment focused on electricity networks and renewable energy projects. The move highlights continued demand for grid upgrades and clean energy infrastructure across the UK.

    Cash Flow Growth – Johnson Matthey (LSE:JMAT)
    Johnson Matthey reported that FY26 free cash flow more than doubled and exceeded analyst expectations, supported by operational improvements and stronger business performance. The update may strengthen investor confidence in the company’s restructuring and capital allocation strategy.

    Currencies (vs GBP)

    USD: Down (-0.13%), $1.3402
    CHF: Down (-0.10%), Fr.1.05594
    EUR: Down (-0.04%), €1.1538
    JPY: Down (-0.20%), ¥213.782
    AUD: Up (0.16%), $1.881840
    Bitcoin (BTC/GBP): Down (-1.49%), £54,578.6

    Commodities

    Copper: Down (0.35%), 6.34338
    Gold: Down (1.42%), 4,392.96
    Brent Crude: Up (2.35%), 94.61
    Natural Gas: Down (-0.26%), 3.072

  • Market Open: Pets at Home Profits, BP Chair Exit

    Market Open: Pets at Home Profits, BP Chair Exit

    European markets weakened as Pets at Home profits fell and BP faced governance scrutiny, while Brent crude and gold moved lower.

    Market Overview

    European markets moved lower at the open, with the FTSE 100 down 0.27 per cent, the CAC 40 falling 1.03 per cent and the DAX declining 0.80 per cent as investors assessed weaker corporate updates and ongoing geopolitical developments. In the US, sentiment remained firmer overnight, with the Nasdaq rising 0.30 per cent and the S&P 500 adding 0.19 per cent. Markets also continued to monitor oil price stability following signs of progress in US-Iran discussions, while UK retail and consumer data pointed to continued pressure on discretionary spending.

    Commodity markets were mixed, with Brent crude easing as traders weighed supply expectations against Middle East risks. Gold and copper both softened, reflecting cautious sentiment around global growth expectations. Sterling was broadly firmer against the US dollar and Australian dollar, while Bitcoin edged higher against the pound. Investors also reacted to easing UK grocery inflation and signs consumers remain focused on affordable leisure spending.

    Market Numbers

    FTSE 100: Down (-0.27%), 10,478.87
    CAC40: Down (-1.03%), 8,173.110
    DAX: Down (-0.80%), 25,184.89
    NASDAQ: Up (0.30%), 30,057.6
    S&P 500: Up (0.19%), 7,531.4

    In the Headlines

    Profit Pressure – Pets at Home (LSE:PETS)
    Pets at Home reported a slide in annual profits as price reductions and softer consumer demand weighed on margins. The update highlights continued pressure across UK retail as households remain cautious on discretionary spending.

    Leadership Dispute – BP (LSE:BP.)
    BP’s former chair said he was removed without explanation, raising questions around governance and leadership stability at the energy major. The development comes as investors continue to focus on strategic direction and energy market volatility.

    Currencies (vs GBP)

    USD: Up (0.03%), $1.3451
    CHF: Down (-0.12%), Fr.1.05522
    EUR: Down (-0.14%), €1.1543
    JPY: Up (0.01%), ¥214.244
    AUD: Up (0.42%), $1.882660
    Bitcoin (BTC/GBP): Up (0.09%), £56,405.4

    Commodities

    Copper: Down (-0.45%), 6.42270
    Gold: Down (-0.54%), 4,483.18
    Brent Crude: Down (-2.78%), 94.29
    Natural Gas: Down (-0.17%), 2.994

  • Micron Tops $1 Trillion Valuation as AI Rally Continues and Iran Negotiations Remain in Spotlight: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Micron Tops $1 Trillion Valuation as AI Rally Continues and Iran Negotiations Remain in Spotlight: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures traded higher on Wednesday after semiconductor stocks powered another strong Wall Street session, sending the S&P 500 and Nasdaq Composite to fresh record closes. Investors continued to monitor developments surrounding U.S.-Iran peace negotiations while maintaining strong interest in artificial intelligence-related investments.

    As of 03:34 ET, futures on the Dow Jones Industrial Average were up 127 points, or 0.3%. S&P 500 futures gained 0.1%, while Nasdaq 100 futures advanced 0.2%.

    Markets ended Tuesday mostly higher, with the S&P 500 and Nasdaq Composite both setting new closing records. The Dow Jones Industrial Average was the only major index to finish lower.

    Technology and semiconductor shares remained at the centre of the rally as investors continued to pour money into companies expected to benefit from rapid AI infrastructure expansion.

    “Iran dominated the market conversation, but the parabolic surge in AI-linked stocks is occurring independent of anything happening in the Middle East,” analysts at Vital Knowledge said in a note to clients.

    Micron Extends AI-Driven Surge

    Micron (NASDAQ:MU) was among the biggest gainers, with its latest rally lifting the company’s market capitalisation above the $1 trillion mark for the first time in its history.

    The momentum continued in premarket trading Wednesday, with the stock adding more than 4%.

    Demand for advanced memory chips used in artificial intelligence systems has remained exceptionally strong as major technology companies accelerate AI investment. Micron, one of the few large-scale producers of high-bandwidth memory chips, recently announced that all of its HBM supply capacity through 2026 has already been allocated.

    The supply shortage has significantly boosted memory-chip pricing and improved expectations for Micron’s future profitability. Reuters, citing regulatory filings, reported that institutional investors have sharply increased exposure to the company.

    Markets Await Clarity on Iran Conflict

    Investors also remained focused on diplomatic efforts aimed at ending the conflict between the United States and Iran, which has been ongoing for nearly three months.

    Al Jazeera reported that indirect negotiations between Washington and Tehran have continued despite military exchanges earlier this week. U.S. officials said the fragile ceasefire remains in place, while Iran warned it would retaliate if the agreement is broken.

    Reports earlier this week suggested both sides were close to reaching a framework agreement that could include an extension of the ceasefire and the reopening of the Strait of Hormuz, a critical global oil shipping route. The channel has been heavily disrupted since the conflict began in late February.

    However, tensions in the wider region remain elevated. According to the Associated Press, fresh clashes erupted in southern Lebanon between Israeli forces and Hezbollah militants backed by Iran. Tehran has reportedly insisted that any broader peace agreement must also address the fighting in Lebanon.

    Oil Prices Ease From Recent Highs

    Oil prices declined as traders reacted to the latest diplomatic developments.

    Brent crude futures fell 2.2% to $97.38 a barrel. Although prices have retreated from recent peaks above $100, they remain substantially above levels seen before the conflict began.

    The Strait of Hormuz continues to be a key focus for energy markets after Iran effectively restricted maritime traffic following the escalation involving U.S. and Israeli forces.

    Reports that several ships had successfully passed through the waterway this week improved hopes of a gradual reopening, although oil shipments remain far below normal levels.

    Samsung Workers Back Wage Agreement

    Separately, a majority of unionised workers at Samsung Electronics (USOTC:SSNHZ) approved a tentative wage agreement on Wednesday, removing the threat of a major strike that could have disrupted global semiconductor supply chains and weighed on South Korea’s economy.

    The union said around 74% of participating workers voted in favour of the agreement. The deal halts plans for an 18-day strike involving roughly 48,000 employees, most of whom work in Samsung’s semiconductor operations.

    Samsung shares finished the session 2.7% higher in Seoul.

    The wage agreement, reached with government mediation, followed difficult negotiations over bonuses and profit-sharing tied to soaring demand for AI-related memory chips.

  • FTSE 100 Slips as Hormuz Tensions Overshadow Hopes for Iran Breakthrough

    FTSE 100 Slips as Hormuz Tensions Overshadow Hopes for Iran Breakthrough

    British equities edged lower on Wednesday as uncertainty surrounding U.S.-Iran ceasefire negotiations and ongoing tensions in the Strait of Hormuz outweighed signs of tentative diplomatic progress, reversing earlier gains across London markets.

    The FTSE 100 fell 0.09%, underperforming its European peers, while Germany’s DAX rose 0.54% and France’s CAC 40 added 0.35%. Sterling was little changed, trading 0.01% higher at $1.3447 as of 07:22 GMT.

    Oil prices retreated after Tuesday’s sharp rally, with Brent crude down 2.20% at $94.56 a barrel and WTI crude falling 2.7% to $91.37, as traders assessed conflicting developments surrounding the Strait of Hormuz and wider Middle East negotiations.

    Market sentiment remained fragile after Iran accused the United States of breaching the maritime ceasefire through strikes on targets in southern Iran. Washington said the military response was defensive, citing Iranian drone activity near U.S. naval vessels and reports of speedboats preparing to deploy naval mines, according to the New York Times, citing two U.S. officials.

    At the same time, reports that several LNG tankers had recently passed through the Strait of Hormuz improved expectations that the key shipping route could remain operational, easing immediate concerns over global energy supply disruptions and pressuring crude prices lower.

    Diplomatic discussions mediated by Qatar also continued, with access to Iran’s frozen overseas assets remaining a central point of disagreement, according to IRGC-linked Tasnim News. The report stated that any potential memorandum of understanding could require the release of approximately $24 billion in blocked Iranian funds.

    Separately, internet monitoring group NetBlocks said Iran’s international internet connectivity had been largely restored on Wednesday after 88 days of near-total isolation, a development interpreted by some investors as a tentative confidence-building signal during negotiations.

    New Zealand Foreign Minister Winston Peters said he had spoken with Iranian Foreign Minister Abbas Araghchi regarding Tehran’s position in the talks, while reiterating that freedom of navigation through the Strait of Hormuz would be essential for any lasting regional agreement.

    However, more hardline rhetoric from Tehran continued to complicate the outlook. A member of Iran’s parliamentary national security committee said the country should make “maximum use” of the Strait of Hormuz because “the world” depends on it, while also calling for changes to the legal framework governing the waterway. Iran’s economy minister separately stated that the country was increasing use of land borders and northern ports to reduce reliance on southern maritime trade routes affected by the U.S. naval presence.

    UK Market Round-Up

    Pets at Home (LSE:PETS) reported a 30.2% decline in annual underlying pre-tax profit, broadly in line with market expectations, as weaker retail performance and price reductions offset continued growth in its veterinary operations.

    Meanwhile, UK energy regulator Ofgem announced that the domestic energy price cap will rise by 13% between July and September, increasing average monthly household bills by around £18 for customers using both gas and electricity. The move reflects higher wholesale energy prices linked to escalating tensions surrounding the Iran conflict.

  • UK oil stocks retreat despite rebound in crude prices after new U.S. strikes on Iran

    UK oil stocks retreat despite rebound in crude prices after new U.S. strikes on Iran

    Shares in major UK energy companies moved lower in early London trading on Tuesday, even as oil prices recovered following overnight U.S. military strikes in southern Iran that renewed uncertainty around the stability of the fragile ceasefire and prospects for a diplomatic resolution.

    Shell plc (LSE:SHEL) declined 0.40%, while BP plc (LSE:BP.) fell 0.71% by 09:14 GMT.

    Smaller producers also trade lower

    Mid-sized and independent energy producers also weakened alongside the oil majors. Harbour Energy (LSE:HBR) dropped 1.97%, Serica Energy (LSE:SQZ) lost 1.83%, and Ithaca Energy (LSE:ITH) slipped 1.56%.

    Oil rebounds after military action near Strait of Hormuz

    Brent crude futures rose 3.4% to $96.59 per barrel after tumbling 6.78% on Monday to close at $93.42.

    Meanwhile, U.S. West Texas Intermediate crude traded down 3.64% at $93.08.

    The U.S. military said it carried out “self-defence strikes” overnight targeting Iranian missile launch sites and boats allegedly involved in laying mines close to the Strait of Hormuz.

    CENTCOM spokesperson Timothy Hawkins told CNN that forces acted “to protect our troops from threats posed by Iranian forces,” while maintaining that the ceasefire agreement remained active. Iranian authorities did not immediately confirm that assessment.

    Negotiation hopes mixed with continued diplomatic tensions

    The strikes came only hours after Donald Trump said meaningful progress had been achieved in negotiations, posting on Truth Social that Iran’s stockpile of enriched uranium would either be transferred to the United States or destroyed at a mutually agreed location.

    Iranian officials provided a more cautious assessment. Foreign Ministry spokesperson Esmaeil Baqaei acknowledged progress on “a large portion of discussion topics” but warned that “frequent changes in the positions of American officials complicate every negotiation,” adding that no immediate agreement could yet be declared.

    A senior Iranian delegation led by parliament speaker Mohammad Bagher Ghalibaf and Foreign Minister Seyed Abbas Araghchi travelled to Qatar on Monday for another round of discussions, which a U.S. official reportedly described as encouraging.

    Nuclear dispute and sanctions remain major obstacles

    According to CNN, disagreements over nuclear language and sanctions relief continue to represent the main barriers to a final agreement.

    Washington is reportedly insisting on what officials have described as a “no dust, no dollars” approach, requiring Iran to eliminate nearly 1,000 pounds of highly enriched uranium before any sanctions relief or financial concessions are granted.

    The Strait of Hormuz, a vital route handling around one-fifth of global oil supplies, has remained largely shut since the conflict began.

    U.S. Secretary of State Marco Rubio said the waterway would reopen “one way or the other,” although he cautioned that reaching a deal could “take a few days.”

    Energy sector faces uncertainty over future oil price support

    Major oil producers have benefited from elevated crude prices throughout the conflict, supporting earnings across the sector.

    However, investors remain aware that any durable peace agreement leading to the reopening of the Strait of Hormuz could quickly remove one of the key drivers behind recent strength in oil markets.