Oil eases to below $100 and stocks rebound on hopes of renewed Iran talks – MARKETS LIVE
ANGHARAD CARRICK, BUSINESS NEWS EDITOR
Updated:
While oil fell below $100 per barrel, stocks rose as Iran stated that it was open to a deal with the United States despite the collapse of negotiations over the weekend.
Even as the US began to blockade the Strait of Hormuz, a wave of relief spread through markets as Donald Trump said Iranian negotiators were willing to reach a deal.
Iranian President Masoud Pezeshkian said the country was open to negotiations, but only within the framework of ‘international law’.
Brent crude fell below $100 per barrel to around $98; Asian stocks were higher overnight, with the S&P 500 index closing above its pre-war level.
But the US is still playing hardball, imposing a blockade of the Strait of Hormuz that came into effect on Monday afternoon (London time). Trump said the US would block Iranian ships and all ships paying tolls.
Vice President JD Vance said the US had ‘showed that two people can play this game’. If the Iranians are going to try to engage in economic terrorism… no Iranian ships will leave either.’
Elsewhere today, Rachel Reeves will visit Washington DC for the International Monetary Fund (IMF) summit. Growth forecasts for the UK are expected to be lowered as high energy prices increase the risk of stagflation and recession.
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Intertek up 11% as businesses consider separation
Intertek is leading the FTSE’s biggest gains this morning after it said it was launching a strategic review that could lead to a separation of its businesses.
The FTSE 100-listed assurance, testing, auditing and certification (ATI) firm said it was looking at splitting off its Energy and Infrastructure division, either through sale or demerger.
Chief executive André Lacroix said: ‘We believe the two specialist scale global ATIC businesses may be best positioned to accelerate growth and deliver greater value to shareholders.’
Shares rose 11.58 per cent to 4,260p.
FTSE 100 opened with a rise
The FTSE 100 index opened 23 points higher at 10,597, clawing back all of Monday’s losses amid renewed optimism that the conflict will end.
London’s majors faced a more muted reaction than Asian markets overnight. This may have something to do with Brent rising to $99.
Retailers revived with early arrival of Easter
Retail sales in March rose 3.6 percent annually, up from 1.1 percent in February, driven by the early arrival of Easter.
Figures from the British Retail Consortium (BRC) show food sales rose 6.8 per cent, above the 12-month average of 4.3 per cent, while non-food sales rose 0.9 per cent, below the 1.1 per cent average.
BRC chief Helen Dickinson said: ‘Early Easter brought a much-needed boost to food sales as families gathered together over the long weekend.
‘Disruption to international travel caused by the conflict in the Middle East has also affected sales of travel-related goods.’
But analysts warn that sales growth will likely slow in April and throughout the rest of the year.
‘We are in the early days of the latest energy shock and we think the big picture is that consumer spending growth will be slower over the rest of 2026 as inflation rises and disposable incomes take a hit.’ Pantheon Macroeconomics says.
BP marks ‘exceptional’ quarter due to rising oil prices
BP reported an ‘exceptional’ first quarter after conflict in the Middle East caused Brent crude prices to rise.
Oil trading is expected to deliver “outstanding” results compared to the previous “weak” quarter, the oil giant said in a trading update.
The price of Brent rose from below $60 a barrel at the beginning of 2026 to around $98 this morning and rose as high as $118 amid the conflict.
BP said oil and gas production remained flat overall, while results in its gas trading division were average.
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