UK equities pushed higher on Friday as renewed diplomatic efforts between the United States and Iran helped ease concerns over Middle East tensions.
The FTSE 100 gained 0.23% by 03:25 ET, with European peers also advancing as Germany’s DAX rose 0.24% and France’s CAC 40 gained 0.21%.
Sterling strengthened 0.14% against the U.S. dollar, trading at $1.3426, reflecting a modest improvement in broader market sentiment.
U.S. President Donald Trump said Washington would respond to Iranian-linked attacks on commercial shipping in the Strait of Hormuz while reiterating that Iran “can never possess a nuclear weapon.”
Regional mediators including Qatar, Saudi Arabia, Pakistan, Turkey and Egypt intensified efforts to revive U.S.-Iran nuclear negotiations even as military tensions remained elevated.
Iran denied allegations relating to activity in the Strait of Hormuz and maintained that its nuclear programme is intended solely for peaceful purposes, underscoring the continuing divide between military and diplomatic tracks.
The country also concluded state funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei, whose burial at the Imam Reza shrine in Mashhad brought the official mourning period to a close.
In UK politics, Andy Burnham secured 322 nominations from Labour MPs on Thursday, leaving him just one short of the 323 required to prevent a challenger entering the leadership contest.
The former Greater Manchester mayor is widely expected to be confirmed as Labour leader next week before taking office as prime minister on 20 July.
Commodity markets retreated, with Brent crude falling 0.84% to $75.66 per barrel and WTI crude declining 0.78% to $71.52, while gold futures slipped 0.44% to $4,122.40 an ounce.
Apollo Global (NYSE:APO) moved ahead of Castlelake in the contest for easyJet (LSE:EZJ), agreeing in principle to a £5.7 billion takeover proposal that values the airline at £7.15 per share.
Castlelake confirmed it is still considering its options following Apollo’s improved proposal, with a further announcement expected as and when appropriate, keeping the bidding contest very much alive.
MJ Gleeson (LSE:GLE) said full-year profit is expected to meet market expectations but cautioned that geopolitical uncertainty and potential changes to UK government policy could affect its outlook for fiscal 2026.
Vodafone (LSE:VOD) remained in focus after UAE telecoms group e& agreed to sell its 16.3% holding in the company to Vega, the investment vehicle backed by Xavier Niel, in a transaction worth $5.95 billion at a 13% premium.
Hays (LSE:HAS) said it expects fiscal 2026 operating profit to come in at the upper end of market forecasts, as cost-saving initiatives continue to offset subdued recruitment activity across its global markets.