UK oil majors slip as oil bounces on fresh U.S. strikes in southern Iran
Investing.com -- British stocks edged higher on Tuesday as cautious optimism over U.S.-Iran ceasefire negotiations lifted sentiment, outweighed a fresh surge in oil prices that pushed Brent crude back towards $100 a barrel.
The FTSE 100 gained 0.75%, outperforming a softer continental Europe where Germany’s DAX shed 0.28% and France’s CAC 40 lost 0.38%. Sterling slipped 0.21% to $1.3473, as of 03:15 ET (07:15 GMT).
Brent crude surged more than 2% a barrel, partially reversing Monday’s selloff, after U.S. Central Command confirmed "self-defence strikes" on Iranian missile launch sites and boats near the Strait of Hormuz.
Tehran has effectively halted nearly all non-Iranian shipping through the strait since hostilities began, choking roughly a fifth of global oil and LNG flows.
A Nikkei report said Iran had agreed in principle to clear mines from the waterway within 30 days under an emerging memorandum of understanding.
UK shop price inflation accelerated to 1.2% in May from 1% in April, the British Retail Consortium said, driven by war-related supply disruption and higher energy costs.
Furniture and health and beauty products rose by the most, reflecting climbing raw material and shipping costs, though food inflation eased to a one-year low of 2.7%. The BRC called on the government to do more to contain costs.
On the diplomatic front, U.S. President Donald Trump posted on Truth Social that Iran’s enriched uranium would be "turned over to the United States to be brought home and destroyed" or destroyed in place "in conjunction and coordination" with Tehran.
A U.S. official confirmed Iran had agreed in principle to those conditions. However, Iranian Foreign Ministry spokesman Esmaeil Baqaei cautioned that "the frequent changes in the positions of American officials complicate every negotiation," and Secretary of State Marco Rubio said a deal could "take a couple days," dampening hopes of an imminent resolution.
UK round up
Kingfisher reported a 0.7% fall in Q1 underlying sales against a soft market backdrop but maintained its full-year profit guidance, saying core categories proved resilient despite a late spring start weighing on footfall and seasonal demand.