|  Updated: 

FTSE 100 Live: Stocks to jump; oil falls as Trump says Iran has ‘last chance’ for peace

By: Felix Armstrong and Samuel Norman

Add as a preferred source on Google
Donald Trump, wearing a blue suit and tie, speaking with his hand resting on a surface indoors.
Welcome back to CityAM's FTSE 100 live blog (Jacquelyn Martin via AP/PA Images)

Welcome back to the CityAM FTSE 100 liveblog.

It’s Tuesday morning and the UK’s blue-chip index is set to jump as optimism grows that the US could reach a peace deal with Iran.

The price of oil drifted lower yesterday after Donald Trump called off strikes on Iran but progress towards a finalised peace deal continues to stall as the President clashes with Iran’s leadership.

Brent crude – the international benchmark for oil prices – tumbled over five per cent on Monday to below $83 per barrel as Trump claimed a peace deal was “imminent”. But the regime in Iran had poured cold water on the hopes of talks, stating it has “no plan to receive a delegation or send an Iranian one” in the coming days. 

Later on Monday, Trump insisted that peace talks were progressing. Talks were “going on right now” and will “go quickly, one way or another,” Trump said, adding: “This is the last chance for them to sign a good document.”

Deutsche Bank analyst Jim Reid said the “hopes have risen over the weekend of a diplomatic off-ramp” between the US and Iran. But Patrick Munnelly, market strategist at Tickmill Group, warned there was “still a meaningful gap between talks resuming and the Strait of Hormuz fully reopening”.

The FTSE 100 closed 10 points lower on Monday, at 10,857. The index endured a shaky open to make some gains during the afternoon, but slipped during late trading. Housebuilders like Barratt Redrow and Vistry were among the London Stock Exchange’s biggest gainers, as they rallied on hopes of a peace deal and rumours that the government could revive the Help to Buy scheme.

We’ll be bringing you the latest market and economic updates throughout the day.

This morning’s top stories:

    Similarly tagged content: