FTSE 100 climbs as oil prices dip on US-Iran talks hope
European stocks finished the session higher on Monday as a decline in oil prices fueled optimism regarding <a oil prices retreated and talks on trade and AI between the US and China made apparent progress", said AJ Bell director Russ Mould.
“Comments from Donald Trump signalling he would ‘probably’ be open to meeting his Iranian counterpart at the UN General Assembly this week, and suggestions that shipments of oil and gas through the Strait of Hormuz are at a six-month high, helped pull oil down towards the 100 dollars per barrel mark.
“This is still more than 40% above pre-war levels and firmly in alarm bell territory in terms of the inflationary pressures it is unleashing, but at least the trajectory is more favourable,” Mr Mould added.
Brent crude was priced at 100.28 dollars a barrel in London at the time of the market close on Monday, falling from 104.37 dollars late on Friday.
The drop in oil prices followed signals from the US president that he would be open to a meeting with Iranian President Masoud Pezeshkian, who is traveling to New York for the UN General Assembly this week.
Across European markets on Monday, the CAC 40 in Paris rose 0.9%, and the DAX 40 in Frankfurt gained 1.1%.
In Germany, investors appeared to overlook recent political challenges for Chancellor Friedrich Merz, whose centre-right CDU party faced two regional election losses to far-right and far-left opponents.
JP Morgan’s Greg Fuzesi noted that while the results increase pressure on Mr Merz, he anticipates the government will continue with its current fiscal policy and economic reform agenda.
In New York, the Dow Jones Industrial Average was up 0.5% when the London markets closed. The S&P 500 rose 1.0%, and the Nasdaq Composite climbed 1.6%.
Also boosting market sentiment, US Treasury Secretary Scott Bessent described a “very successful” meeting on trade and artificial intelligence with Chinese officials on Sunday, noting that both nations discussed improved communication regarding artificial intelligence threats.
“We just had a very successful engagement with the Chinese,” Mr Bessent told reporters after the all-day meeting with Vice Premier He Lifeng.
The discussions, which also included top US trade official Jamieson Greer, spanned approximately eight hours and established a foundation for potential agreements on trade, AI, and other topics ahead of a summit between the nations’ leaders.
