London pre-open: Stocks to rise, oil up after Trump slams Iran's peace proposal reply

(Sharecast News) - London stocks were set to edge up at the open on Monday as oil prices rose after Donald Trump called Iran's response to a US peace proposal "totally unacceptable".

The FTSE 100 was called to open around 18 points higher. At 0715 BST, Brent crude was up 4% at $105.29 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 made demands for 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".

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Congratulations ladies and gentlemen, we just reached the point this Monday where war headlines don't bother AI investors anymore!

"Despite waking up to the news that the US rejected Iran's peace proposal, and that the Strait of Hormuz remains closed, despite the fact that US crude rebounded back above $100 per barrel - a more than 5% jump this morning with no retreat yet - the Korean Kospi index - which had been one of the most sensitive indices to oil prices - is up by more than 4.50% to a fresh all-time high at the time of talking."

She added: "It's hard to make sense of the market reaction, it feels like the calm before a storm - higher energy prices will hit the ground sooner rather than later as Middle East tensions prolong and the world's energy stockpiles dry out."

In corporate news, Compass Group 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.

Chief executive Dominic Blakemore said there was "great momentum" across the business, with a number of new contract wins secured during the first half.

Games Workshop said Neil Tomlinson, group operations director, has been appointed as chief operating officer.

Tomlinson will be responsible for the company's design studios, extending his remit across the full design to manufacture team, the company added in a statement.

Max Bottrill, operational IP and design director, will report to Tomlinson, and will step down as a PLC director. The changes will be effective from May 31.

Residential landlord Grainger said it has agreed an extension on £540m of its core banking facilities to 2033 with AIB, Barclays, HSBC and NatWest.

It said the extensions further strengthen the company's balance sheet with weighted average facility maturity including extension options increasing to 4.6 years.

The extensions were agreed at lower margins, resulting in an annual saving of about £1m in finance costs.

Drugmaker GSK said it has struck an exclusive agreement with Sino Biopharmaceutical subsidiary Chia Tai Tianqing Pharmaceutical to accelerate its chronic hepatitis B treatment, bepirovirsen, in mainland China.