London pre-open: Stocks to nudge up as oil creeps higher again

(Sharecast News) - London stocks were set to nudge up at the open on Thursday, while oil prices crept higher again as investors continued to eye developments in the US-Iran war.

The FTSE 100 was called to open around 10 points higher. At 0730 BST, Brent crude was up 0.5% at $101.74, having tumbled a day earlier.

Sentiment got a boost on Wednesday and stocks markets surged following reports the US and Iran were close to agreeing on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.

Donald Trump later said that the war could end very soon but also warned that the US would resume bombing Iran "at a much higher level" if the plan is rejected.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "We had peace proposals and market rallies over the course of the past weeks, and all of them ended in disappointment. Given the chaotic diplomacy, and given how the US lost control of the situation - and given the earlier unfounded announcements of progress - I would like to say: 'I will clap when Iran confirms.'

"Because the longer this drags on, the greater the risk of oil shortages and sharper spikes in oil prices. And a 180-degree turn in the situation is just one headline away. Just one headline."

In corporate news, oil major Shell posted an above-forecast surge in profits fuelled by soaring energy prices in the wake of the US-Iran war.

First-quarter adjusted earnings came in at $6.92bn, up from $3.26bn in the fourth quarter and $5.58bn a year previously. Analysts had been expecting earnings closer to $6.36bn.

The blue chip also upped the divided by 5% and announced a $3bn share buyback programme.

JD Sports Fashion said it expected muted market growth in the near term due to a weaker spending outlook for consumers and product cycle changes at its major footwear partners.

The company widened full-year earnings guidance to £750m - £850m after reporting profit before tax and adjusting items of £852m for fiscal 2025/26, down 7.7% year on year.

It added that although JD Sports had no direct exposure in the Middle East, "we continue to closely monitor the evolving situation and its potential impact on the consumer and our business if the crisis is prolonged".

British Gas owner Centrica said it had continued to make "good progress" on the execution of its strategy. However, it also warned that retail EBITDA was expected to be towards the lower end of its guidance range of £500m to £800m, reflecting the impact of warmer weather year-to-date, the shape of the commodity price curve and "continued challenges" in residential energy bad debt collection.

Separately, Centrica announced it had acquired the Severn Combined-Cycle Gas Turbine power station from the Calon Energy Group for approximately £370m, increasing its power portfolio to 4GW, including 1GW of assets currently in planning and construction.