Global markets moved higher on Friday, with the FTSE 100 index rising 0.50% to 10,733.72, reflecting a broader recovery in European equities as U.S.-Iranian negotiations on a potential ceasefire took precedence over geopolitical risks. The German DAX added 0.66% to 25,437.03, while France’s CAC 40 climbed 0.40%, and the Euro Stoxx 50 index rose 0.81% to 6,323.45. Sterling remained relatively flat against the dollar at 1.3223, a slight decline of 0.01% in the session. Meanwhile, oil prices weakened, with Brent crude dropping 0.63% to $105.95 and WTI crude falling 1.4% to $93.32, though futures settled marginally lower at $105.92 and $93.24 respectively. Gold futures surged 0.32% to $4,311.50, while spot gold rose 0.06% to $4,276.23, indicating a safe-haven demand amid market uncertainty.
The FTSE 100’s gains stemmed from optimism over progress in U.S.-Iranian talks, which centered on a phased framework where Iran would reopen the Strait of Hormuz in exchange for the lifting of U.S. economic sanctions. Iranian President Masoud Pezeshkian reiterated Tehran’s stance, stating to Fox News that Washington should return to a previously agreed Memorandum of Understanding ‘before the midterm elections.’ He emphasized that Iran sought only to fulfill its legal entitlements under international law. Meanwhile, the U.S. Senate narrowly rejected a Democratic resolution to curb President Trump’s authority to engage in conflict with Iran, voting 50-49. The vote underscored partisan divisions on Iran policy.
Geopolitical tensions, however, persisted. The Strait of Hormuz saw a sharp decline in vessel transits on Thursday, falling to just nine, down from a 10-day average of around 18. In response, the UAE suspended flights by Iranian carriers, joining Oman, Iraq, Azerbaijan, Georgia, and Turkmenistan in enforcing secondary sanctions. These measures intensified regional tensions, with Houthi forces in Yemen launching strikes on Saudi Arabia’s Taif and Yanbu, as well as military sites near the Saudi-Yemeni border. Saudi Arabia, Türkiye, and Pakistan convened an urgent chiefs-of-staff meeting under the Mecca Joint Defence Agreement to coordinate a response. Qatar condemned the attacks, asserting they violated Saudi sovereignty under Article 51 of the UN Charter, which permits collective self-defense.
The UK’s Foreign Secretary, Ed Miliband, reiterated the government’s stance, warning of the UK’s ‘unwavering resolve to combat threats from Iranian-linked groups on British soil.’ The escalation in regional conflicts has raised concerns over potential disruptions to global energy supplies, particularly through the Strait of Hormuz, a critical chokepoint for oil transit. Despite the mixed signals, the market’s focus remained on the diplomatic front, with AI-driven investment strategies like ProPicks’ Energy Elite and Mid Cap Movers outperforming their benchmarks by 37% and 21% year-to-date, while Tech Titans had beaten the S&P 500 by 112% since its launch nearly three years ago.
