London open: FTSE gains amid cautious optimism over US-Iran peace deal
By Michele Maatouk
Date: Tuesday 26 May 2026
(Sharecast News) - London stocks rose in early trade on Tuesday, with investors cautiously optimistic about a peace deal despite the US carrying out renewed strikes on Iran, threatening the fragile ceasefire that began on 8 April.
At 0835 BST, the FTSE 100 was up 0.7% at 10,538.71, while Brent crude - which had tumbled on Monday amid signs of progress in peace talks - was up 2.8% at $98.86 a barrel after the US struck Iranian missile launch sites and mine-laying boats in southern Iran overnight.
Central Command (Centcom) said it was an act of self-defence. Centcom spokesperson Navy captain Tim Hawkins said Centcom "continues to defend our forces while using restraint during the ongoing ceasefire".
US Secretary of State Marco Rubio said a peace deal with Iran was still possible despite the strikes.
Speaking to reporters on an official visit to India, he said: "We'll see if we can make progress. I think it's a lot of talking back and forth going on about specific language in the initial document, so it'll take a few days."
He said President Donald Trump had "expressed his desire to make it". "He's either going to make a good deal or no deal," Rubio said.
Over the weekend, Trump said an agreement with Iran had been "largely negotiated" and that details, which include the reopening of the Strait of Hormuz, would be announced soon. Trump's announcement was made following a call with leaders and officials from Qatar, Saudi Arabia, the United Arab Emirates, Pakistan, Jordan, Egypt, Turkiye, and Bahrain.
Trump said on Truth Social: "Final aspects and details of the deal are currently being discussed, and will be announced shortly."
Susannah Streeter, chief investment strategist at Wealth Club, said: ''There's a spring in the step of the Footsie as hopes are kept alive about the prospects of a resolution to the crisis in the Middle East. There's a dose of cautious optimism still swirling, but it's losing its potency after fresh US attacks in Iran.
"The limited nature of the military action, targeting missile launch sites and mine-laying boats, may help assuage worries the move could re-ignite hostilities. For now, a ceasefire remains in place, and although it's clearly fragile, even before these strikes both sides made it clear a deal wasn't imminent.
"So, given the fresh uncertainty, oil prices have headed higher again after a sharp fall over the weekend. Brent crude, the benchmark, is back trading above $98 a barrel as speculation fills the diplomatic void. Even if Iran and the US can get back to the table quickly and negotiate a longer-term deal, it'll take many months to get supplies flowing freely again from the region, and output will be constrained by the damage to energy facilities."
In equity markets, B&Q and Castorama owner Kingfisher shot to the top of the FTSE 100 after saying it was still on track to meet full-year guidance despite a 0.9% fall in first-quarter sales due to softer markets in the UK and France.
Heavily-weighted miners were also on the rise, with Rio Tinto, Glencore, Anglo American and Antofagasta among the top performers as copper prices rose.
On the downside, Melrose Industries slid following a chemical incident at GKN Aerospace's Garden Grove facility in the US. The company said there had been mandatory evacuation orders for portions of the surrounding community to protect public safety while response operations continued but that there had been no injuries, leaks or contamination.
Market Movers
FTSE 100 (UKX) 10,538.71 0.69%
FTSE 250 (MCX) 23,372.01 0.88%
techMARK (TASX) 6,064.40 -0.07%
FTSE 100 - Risers
Kingfisher (KGF) 308.10p 6.02%
Metlen Energy & Metals (MTLN) 40.45p 3.85%
International Consolidated Airlines Group SA (CDI) (IAG) 409.20p 3.20%
Rio Tinto (RIO) 8,018.00p 2.97%
Glencore (GLEN) 586.60p 2.97%
Rolls-Royce Holdings (RR.) 1,281.60p 2.87%
Smurfit Westrock (DI) (SWR) 2,852.00p 2.40%
Lion Finance Group (BGEO) 10,870.00p 2.35%
Anglo American (AAL) 3,922.00p 2.35%
Antofagasta (ANTO) 4,031.00p 2.09%
FTSE 100 - Fallers
Melrose Industries (MRO) 491.50p -5.49%
Autotrader Group (AUTO) 445.40p -1.63%
Vodafone Group (VOD) 109.45p -1.48%
BP (BP.) 543.20p -1.38%
BT Group (BT.A) 222.40p -1.20%
Flutter Entertainment (DI) (FLTR) 7,312.00p -1.19%
Entain (ENT) 534.20p -0.89%
Rightmove (RMV) 435.00p -0.79%
Shell (SHEL) 3,184.00p -0.67%
Centrica (CNA) 199.65p -0.62%
FTSE 250 - Risers
Endeavour Mining (EDV) 4,507.00p 5.57%
Hochschild Mining (HOC) 601.00p 5.16%
Pan African Resources (PAF) 140.50p 4.84%
Wizz Air Holdings (WIZZ) 1,017.00p 4.45%
CVS Group (CVSG) 1,250.00p 4.09%
SSP Group (SSPG) 169.60p 3.65%
easyJet (EZJ) 383.00p 3.30%
QinetiQ Group (QQ.) 492.20p 3.23%
WH Smith (SMWH) 514.00p 2.95%
Hays (HAS) 32.18p 2.94%
FTSE 250 - Fallers
AO World (AO.) 87.00p -4.71%
Harbour Energy (HBR) 274.60p -3.38%
Diversified Energy Company (DI) (DEC) 1,122.00p -2.60%
Ithaca Energy (ITH) 237.20p -2.46%
Applied Nutrition (APN) 224.00p -2.18%
Henderson Smaller Companies Inv Trust (HSL) 890.00p -1.11%
Oakley Capital Investments Limited (DI) (OCI) 502.50p -1.08%
Energean (ENOG) 834.50p -1.00%
NCC Group (NCC) 141.00p -0.98%
Partners Group Private Equity Limited. (EUR) (PEY) 8.58p -0.92%
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