London open: FTSE, oil prices rise as Trump rejects Iran's peace proposal response

(Sharecast News) - London stocks rose in early trade on Monday, along with oil prices, after Donald Trump called Iran's response to a US peace proposal "totally unacceptable".

At 0835 BST, the FTSE 100 was 0.5% higher at 10,281.50, while Brent crude was up 3.5% at $104.85 a barrel.

Over the weekend, Iran sent its response to a US proposal for peace talks via Pakistan. The response reportedly focused on ending the war on all fronts, including Lebanon, and demanded compensation for war damages and an end to the US naval blockade.

It also included demands for recognition of Iranian sovereignty over the Strait of Hormuz, guarantees against further attacks and the lifting of sanctions.

However, the US president said on Truth Social that he did not like Tehran's proposal, calling it "totally unacceptable".

Neil Wilson, UK investor strategist at Saxo Markets, said: "The comments nudge in the direction of re-escalation - potentially more shooting - but I'd think there is going to be a fresh olive branch. Another hopeful Friday turns into a more worrying Monday with Iran headlines driving things and crude prices rose about 4% to reflect risks.

"It comes as we enter a key week for the political sphere and the optics of the Trump-Xi meeting. The conflict in the Middle East, Taiwan, Ukraine, tariffs and AI are among the likely topics in what could be a key moment in the relationship between the two countries."

In equity markets, Compass Group shot higher as it boosted its full-year outlook following a robust first half.

The catering giant now expects annual organic operating profit growth of more than 11%, up from previous guidance for around 10%, after underlying interim revenues rose 9% to $25bn and profits jumped 12% at $1.8bn.

British Airways and Iberia owner IAG flew higher as JPMorgan said it remained 'overweight' the shares after a "good" first quarter, driven by strong pricing. The bank also said it expects robust earnings and free cash flow this year despite the impact from higher fuel.

BP and Shell gushed higher in tandem with oil prices.

On the downside, Victrex fell as it posted a decline in first-half underlying pre-tax profit.

F&C Investment Trust tumbled but the drop was technical and due to a 4 for 1 share split becoming effective.

Market Movers

FTSE 100 (UKX) 10,281.50 0.47%

FTSE 250 (MCX) 22,815.04 -0.15%

techMARK (TASX) 5,931.81 0.12%

FTSE 100 - Risers

Compass Group 11 (CPG) 30.65p 4.37%

International Consolidated Airlines Group SA (CDI) (IAG) 399.80p 4.29%

British American Tobacco (BATS) 4,323.00p 1.57%

BP (BP.) 544.40p 1.57%

Relx plc (REL) 2,491.00p 1.42%

NATWEST GROUP (NWG) 586.60p 1.14%

Vodafone Group (VOD) 120.00p 1.10%

Imperial Brands (IMB) 2,748.00p 1.04%

GSK (GSK) 1,855.50p 1.03%

Centrica (CNA) 201.80p 0.90%

FTSE 100 - Fallers

F&C Investment Trust (FCIT) 326.65p -75.22%

Flutter Entertainment (DI) (FLTR) 7,320.00p -2.94%

JD Sports Fashion (JD.) 73.76p -2.32%

Smurfit Westrock (DI) (SWR) 3,050.00p -1.80%

Barratt Redrow (BTRW) 259.60p -1.48%

Babcock International Group (BAB) 1,027.00p -1.33%

Persimmon (PSN) 1,099.00p -1.30%

Fresnillo (FRES) 3,535.00p -1.12%

Marks & Spencer Group (MKS) 328.40p -1.05%

3i Group (III) 2,553.00p -1.00%

FTSE 250 - Risers

Morgan Advanced Materials (MGAM) 226.50p 1.98%

Impax Environmental Markets (IEM) 454.00p 1.91%

Ceres Power Holdings (CWR) 727.50p 1.88%

Oxford Nanopore Technologies (ONT) 114.20p 1.77%

Wetherspoon (J.D.) (JDW) 600.00p 1.50%

VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 474.00p 1.39%

Ithaca Energy (ITH) 267.00p 1.33%

Harbour Energy (HBR) 284.80p 1.15%

Dr. Martens (DOCS) 65.70p 1.08%

Pacific Horizon Inv Trust (PHI) 1,130.00p 1.07%

FTSE 250 - Fallers

Victrex plc (VCT) 565.00p -5.60%

Sirius Real Estate Ltd. (SRE) 102.20p -2.83%

Rank Group (RNK) 97.80p -2.20%

Aston Martin Lagonda Global Holdings (AML) 46.02p -2.13%

JPMorgan Japanese Inv Trust (JFJ) 770.00p -1.91%

SDCL Efficiency Income Trust (SEIT) 42.25p -1.86%

Vistry Group (VTY) 343.60p -1.66%

Taylor Wimpey (TW.) 81.64p -1.59%

Watches of Switzerland Group (WOSG) 548.00p -1.53%

Wizz Air Holdings (WIZZ) 1,004.00p -1.53%