London stocks are set for a subdued start on Friday as investors assess reports that a potential US-Iran agreement is nearing completion but still requires Donald Trump’s approval.
Futures indicate the FTSE 100 will open marginally higher, up around 4 points at 10,430.06, following Thursday’s 0.8% decline.
Market sentiment was supported by reports that US and Iranian negotiators have agreed a framework for a 60-day ceasefire extension, including reopening the Strait of Hormuz and launching wider negotiations over Iran’s nuclear programme.
While US officials have stopped short of formally confirming a deal, Treasury Secretary Scott Bessent said there were signs that an agreement could be emerging.
However, Vice President JD Vance cautioned that several key issues remain unresolved and emphasised that Trump has yet to decide whether he will endorse any memorandum of understanding.
The prospect of easing tensions weighed on energy markets, with Brent crude falling to around US$92.66 a barrel from US$94.57 previously as traders priced in the possibility of restored shipping flows through Hormuz.
On Wall Street, optimism over lower energy prices and continued strength in technology shares helped drive gains. The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.6%, and the Nasdaq Composite advanced 0.9%.
Asian markets followed suit, with Japan’s Nikkei 225 jumping 2.6%, while Hong Kong’s Hang Seng Index rose 1.1%.
In corporate news, AI developer Anthropic announced a US$65 billion funding round, valuing the company at US$965 billion and underscoring continued investor enthusiasm for enterprise-focused artificial intelligence platforms.
Gold edged higher to US$4,506 per ounce as investors continued to maintain some defensive positioning while awaiting further clarity on the geopolitical outlook.
