Late market roundup: FTSE 100 higher but Iran-US stalemate persists

Stocks in London closed mixed on Monday, while oil prices remained elevated as hopes of an imminent peace deal between the US and Iran faded.

The FTSE 100 closed up 36.36 points, 0.4%, at 10,269.43. The FTSE 250 ended down 41.52 points, 0.2%, at 22,807.86, and the AIM All-Share rose 7.98 points, 1.0%, at 822.41.

The Cboe UK 100 ended up 0.4% at 1,021.78, the Cboe UK 250 was 0.1% lower at 19,788.61, and the Cboe Small Companies Index ended up 0.3% at 18,340.53.

Brent crude for July delivery was trading at $103.70 a barrel on Monday, up compared to $101.49 at the time of the equities close in London on Friday.

The continued stalemate between the US and Iran dashed investors’ hopes of an imminent peace deal and heightened concerns over further violence and disruptions to oil supplies through the Strait of Hormuz.

US President Donald Trump described Tehran’s response to the latest US outline for peace talks as ‘totally unacceptable’ in a social media post.

Iran said it had demanded the release of its frozen assets and the end of a US blockade of its ports.

‘The price of oil remains highly reactive to news around the reopening of the Strait of Hormuz, both positive and negative,’ said Kathleen Brooks, research director at trading group XTB.

‘Signs that tankers are getting through the Strait, even if it is a trickle, could weigh on the oil price in the coming days,’ she added.

But JPMorgan analyst Natasha Kaneva thinks that oil prices could remain in the low $100s for most of the rest of this year, averaging $97 for 2026 as a whole, in a scenario assuming the Strait of Hormuz reopens on June 1.

‘Even if the Strait reopens in June, the seasonal lift in summer demand, combined with the exceptionally large commercial stock draws seen in March and April, and likely again in May, should push OECD inventories toward operational stress levels by August. This is what keeps crude prices elevated in the low $100s through most of the year, rather than allowing a sharp retracement once Hormuz reopens, Kaneva wrote in a research note.

In Europe on Monday, the CAC 40 in Paris ended down 0.7%, and the DAX 40 in Frankfurt edged up 0.1%.

In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 rose 0.3% while the Nasdaq Composite was up 0.2%.

The yield on the US 10-year Treasury widened to 4.39% on Monday from 4.37% on Friday. The yield on the US 30-year Treasury stretched to 4.97% from 4.94%.

The pound firmed to $1.3651 on Monday afternoon from $1.3623 on Friday. Against the euro, sterling was higher at €1.1584 from €1.1568 on Friday.

In London, bond yields crept higher, with domestic political uncertainty adding to the Middle East worry.

Prime Minister Keir Starmer vowed to prove his ’doubters‘ wrong in a speech seeking to quell a growing threat to his leadership following disastrous local election results.

But a growing number of Labour party MPs called for Starmer to outline a timetable for a transition of leadership.

Susannah Streeter, chief investment strategist, Wealth Club said: ’There is still a sense of jitters playing out as concerns about political instability collide with inflationary fears prompted by the ongoing conflict in the Middle East. His speech was designed to project a ’keep calm and carry on’ message, but the worry is that it lacks the real substance needed to keep Labour MPs on side.‘

‘The concern is that a change of Prime Minister would prompt wider turmoil at the top of government,’ Streeter says, adding ‘political turbulence is never a good look for a nation that needs to project stability in order to attract long-term investment.’

The euro traded slightly higher against the greenback, at $1.1782 on Monday from $1.1773 on Friday. Against the yen, the dollar was trading at JP¥157.01, higher than JP¥156.63.

In London, Airtel Africa stormed 15% to the good after Bharti Airtel - which has a 63% stake in the company - convened a meeting for May 13 to consider a reorganisation of its subsidiaries’ shareholding structure, including Airtel.

In an exchange filing, Bharti Airtel said the reorganisation of the shareholding framework could involve consolidation or acquisition of shares in its subsidiaries.

British Airways owner IAG shot up 6.4% as it announced the €825.0 million buyback of outstanding 1.125% senior unsecured convertible bonds due 2028.

The rising gold price boosted Fresnillio, up 3.5%, and Endeavour Mining, up 3.3%.

Gold traded higher at $4,733.27 an ounce on Monday, from $4,711.50 on Friday.

Compass Group climbed 2.3% after raising guidance after better-than-expected interim results.

The Chertsey, England-based contract caterer said pretax profit rose 15% to $1.47 billion in the half-year to March 31 from $1.28 billion the year prior. Underlying operating profit shot up 12% to $1.84 billion from $1.65 billion.

Revenue improved 11% to $24.98 billion from $22.57 billion a year prior, with organic growth of 7.2%, benefiting from strong client retention at 96%.

UBS pointed out revenue was 0.5% ahead of Visible Alpha consensus of $24.86 billion, underlying operating profit was 1% above consensus of $1.82 billion with organic revenue growth stronger than 7.0% consensus.

Looking ahead, Compass now expects underlying operating profit growth of ‘above 11%’ for the full-year, its guidance raised from ‘around 10%’.

Compass said it will be ‘driven by organic revenue growth of around 7%, around 2% profit growth from M&A and ongoing margin progression’.

Meanwhile, F&C Investment Trust’s share price, down 75%, reflected a four-to-one share split coming into effect.

The biggest risers on the FTSE 100 were Airtel Africa, up 53.20p at 420.20p, International Consolidated Airlines, up 24.70p at 409.70p, Anglo American, up 151.00p at 4,000.00p, Antofagasta, up 144.50p at 4,042.00p and Fresnillo, up 126.00p at 3,698.00p.

The biggest fallers on the FTSE 100 were F&C Investment Trust, down 989.00p at 329.00p, JD Sports Fashion, down 3.44p at 71.64p, Entain, down 21.40p at 560.60p, Burberry Group, down 40.50p at 1,169.50p and Whitbread, down 77.00p at 2,333.00p.

Tuesday’s global economic calendar has an Australian consumer confidence print overnight and German and US inflation figures.

Tuesday’s local corporate calendar has half-year results from tobacco manufacturer Imperial Brands, full-year results from telecommunications group, Vodafone, and a trading statement from engineering company, IMI.

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