London midday: FTSE surges, oil tumbles amid US-Iran peace hopes

(Sharecast News) - London stocks had surged by midday on Wednesday, extending earlier strong gains as oil prices tumbled amid renewed hopes of a peace deal between the US and Iran.

The FTSE 100 was up 2.3% at 10,448.67, while Brent crude was down 8.5% at $100.56 a barrel after Axios, citing two US officials and two other sources briefed on the issue, said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.

It was understood the US expects Iranian responses on several key points in the next 48 hours. Nothing has been agreed yet, but sources told Axios this was the closest the parties had been to an agreement since the war began.

Among other provisions, the deal would involve Iran committing to a moratorium on nuclear enrichment, the US agreeing to lift its sanctions and release billions in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz.

According to Axios, many of the terms laid out in the memo would be contingent on a final agreement being reached, leaving the possibility of renewed war or an extended limbo.

Stocks had already kicked off the session sharply higher and oil prices were lower after Donald Trump said he was pausing 'Project Freedom' to open the Strait of Hormuz as "great progress" was being made towards a "complete and final agreement with the representatives of Iran".

The US president said on Truth Social that the operation would be paused for "a short period of time" to see whether or not the agreement can be finalised and signed.

Neil Wilson, UK investor strategist at Saxo Markets, said the Axios report "has ignited fresh optimism that we're moving in the right direction for global energy markets, which is supporting a broad risk-on move".

"All the usual caveats are in place here, but it's a sign of investor positioning in recent days that the market was so quick to react," he added.

In equity markets, miners and precious metals miners gained as gold, silver and copper prices rose, along with banks Barclays, Standard Chartered and NatWest.

Travel-related stocks also rallied, with BA and Iberia owner IAG, easyJet, Wizz Air and WH Smith all firmly in the black.

Drinks maker Diageo fizzed higher after its third-quarter organic sales growth beat expectations as solid performances in Europe, Latin American And Caribbean (LAC) and Africa helped to offset weakness in North America.

Retailer Next advanced as it lifted full-year guidance after first-quarter sales beat forecasts, boosted by unusually warm weather.

JD Wetherspoons gained despite warning on profits again as the pub group pointed to higher costs.

On the downside, BP and Shell gushed lower as oil prices slid.

Smith & Nephew slumped as it said it performed in line with expectations in the first quarter, backed its full-year outlook and announced a new $500 buyback.

Online rail ticket platform Trainline lost ground as it cautioned the Iran war and a series of policy measures in the UK would hit sales this year.

Telecom Plus was knocked lower by a downgrade to 'hold' from 'buy' at Deutsche Bank.

Market Movers

FTSE 100 (UKX) 10,448.67 2.25%

FTSE 250 (MCX) 22,946.40 2.24%

techMARK (TASX) 5,951.89 0.83%

FTSE 100 - Risers

Fresnillo (FRES) 3,405.00p 9.41%

Rolls-Royce Holdings (RR.) 1,309.00p 8.60%

Antofagasta (ANTO) 3,871.50p 8.58%

Anglo American (AAL) 3,845.00p 7.84%

Barclays (BARC) 448.70p 7.17%

International Consolidated Airlines Group SA (CDI) (IAG) 393.30p 7.16%

Melrose Industries (MRO) 516.80p 6.78%

Standard Chartered (STAN) 1,934.40p 6.34%

NATWEST GROUP (NWG) 574.40p 5.76%

Prudential (PRU) 1,165.50p 5.67%

FTSE 100 - Fallers

BP (BP.) 547.40p -4.21%

Shell (SHEL) 3,180.50p -3.98%

Smith & Nephew (SN.) 1,130.00p -2.50%

SSE (SSE) 2,514.50p -1.39%

Centrica (CNA) 206.40p -1.15%

Metlen Energy & Metals (MTLN) 37.23p -1.06%

London Stock Exchange Group (LSEG) 9,520.00p -0.61%

National Grid (NG.) 1,282.80p -0.56%

United Utilities Group (UU.) 1,401.50p -0.53%

BT Group (BT.A) 219.75p -0.27%

FTSE 250 - Risers

WH Smith (SMWH) 534.50p 12.22%

Aston Martin Lagonda Global Holdings (AML) 46.12p 10.02%

easyJet (EZJ) 371.40p 8.30%

Pan African Resources (PAF) 148.90p 7.94%

Wizz Air Holdings (WIZZ) 975.00p 7.80%

Hochschild Mining (HOC) 641.50p 7.63%

Close Brothers Group (CBG) 481.60p 6.97%

RHI Magnesita N.V. (DI) (RHIM) 2,805.00p 6.87%

Endeavour Mining (EDV) 4,569.00p 6.72%

SSP Group (SSPG) 159.50p 6.69%

FTSE 250 - Fallers

Telecom Plus (TEP) 1,046.00p -9.78%

Ithaca Energy (ITH) 250.00p -6.81%

Harbour Energy (HBR) 276.60p -5.79%

Diversified Energy Company (DI) (DEC) 1,130.00p -5.69%

Trainline (TRN) 230.60p -3.68%

Ceres Power Holdings (CWR) 717.00p -3.49%

SDCL Efficiency Income Trust (SEIT) 42.75p -2.54%

Energean (ENOG) 869.50p -2.24%

Syncona Limited NPV (SYNC) 88.20p -2.22%

VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 463.00p -2.11%