The UK's blue-chip index, the FTSE 100, is projected to rise this morning. This follows signs of progress in negotiations concerning the Iran war, which contributed to a decline in oil prices.
Brent crude, the international benchmark, saw a fall of approximately three per cent on Tuesday evening, reaching around $89.5 per barrel. This drop occurred after Pakistan's army chief indicated significant advancements towards a US-Iran peace deal. Further optimism among global investors stems from reports that Iran and Oman are close to an agreement for an "interim" reopening of the Strait of Hormuz.
Dan Coatsworth, head of markets at AJ Bell, noted that despite the pressure on oil heavyweights BP and Shell, the FTSE 100 gained ground on Tuesday. This was supported by growth in the retail, aviation, and housebuilding sectors, which often benefit from hopes of a resolution to the Iran conflict due to implications for inflation and borrowing costs if shipping routes are unblocked.