Oil prices declined on Friday as US President Donald Trump indicated he was nearing a final decision on a peace agreement with Iran, raising hopes of increased crude supply. Brent crude for July delivery traded lower at $91.62 per barrel, down from $94.57 at Thursday's London equities close.
The FTSE 100 closed down 16.68 points, or 0.2%, at 10,409.28, while the FTSE 250 rose 100.85 points, or 0.4%, to 23,425.77. The Aim All-Share index gained 7.62 points, or 0.9%, to 821.25. For the week, the FTSE 100 fell 0.3%, the FTSE 250 firmed 2.1%, and the Aim All-Share climbed 3.3%.
Trump's Iran Peace Deal Remarks
In a lengthy social media post, Trump said he would meet in the Situation Room to make a final determination on the peace deal, stressing that Iran must agree never to possess nuclear weapons and to open the Hormuz shipping lanes. He added that Iran would complete the immediate removal of mines in the strait and that the US naval blockade of Iranian ports would be lifted, allowing oil tankers to resume movement. However, it remained unclear whether Iran had agreed to these terms or if the blockade had actually been lifted.
US Vice President JD Vance earlier indicated that Washington and Tehran were close to agreeing to extend their ceasefire in the Middle East war, though the breakthrough depends on Trump's approval.
European and US Markets
In Europe, the CAC 40 in Paris ended down 0.1%, while the DAX 40 in Frankfurt closed 0.1% higher. In New York, the Dow Jones Industrial Average rose 0.7%, the S&P 500 gained 0.3%, and the Nasdaq Composite firmed 0.2%. Dell Technologies surged 31% after first-quarter earnings beat expectations and it raised its top-line guidance by $30 billion for fiscal 2027 to between $165 billion and $169 billion. JPMorgan analysts said Dell is "blowing the socks off expectations" and raising its outlook materially.
Currency and Bond Markets
The pound traded at $1.3479 on Friday afternoon, up from $1.3435 on Thursday. Against the euro, sterling firmed to €1.1543 from €1.1530. The euro traded higher against the dollar at $1.1680, compared to $1.1653 on Thursday. Against the yen, the dollar was at ¥159.15, down from ¥159.23. The yield on the US 10-year Treasury narrowed to 4.43% from 4.46%, while the 30-year yield trimmed to 4.97% from 4.99%.
Bank of England Comments on Inflation
Andrew Bailey, Governor of the Bank of England, stated that allowing inflation to remain above target for a period is "appropriate" given uncertainty and economic weakness. Speaking in Reykjavik, Iceland, he cautioned that reacting too early to inflation concerns might generate undesirable volatility. "Tolerating temporarily above target inflation to provide some support for the real economy is an appropriate way to approach the trade-off," Bailey said, adding that tolerance would weaken if second-round effects emerge.
Commodities and Stocks
Gold traded at $4,584.74 per ounce on Friday, up from $4,479.57 on Thursday, boosting mining stocks. Endeavour Mining rose 4.2%, and Fresnillo gained 1.4%. On the FTSE 250, Ocado soared 7.1% after announcing an agreement to develop Asda's online grocery business across the UK. Asda, one of the UK's largest grocers with 2025 sales exceeding £21 billion and over 1,100 stores, fulfills more than 700,000 ecommerce orders weekly. Bank of America estimated fees of 0.7% to 1.0% of sales, implying annual revenue of £21 million to £30 million once the rollout is complete by fiscal 2028. BofA called the agreement a positive development for Ocado and highly profitable. RBC Capital Markets viewed the deal as a small negative for Asda's rivals Tesco and J Sainsbury, noting it should improve Asda's ecommerce capabilities. Tesco shares fell 2.2%, and Sainsbury's dropped 2.3%. Other retailers declined after Deutsche Bank Research downgraded ratings for Wickes, Dunelm, Currys, and B&M European Value Retail, sending their shares down between 1.0% and 2.4%.
FTSE 100 Risers and Fallers
The biggest risers on the FTSE 100 were Endeavour Mining, up 184.0p at 4,594.0p; Autotrader, up 14.3p at 441.5p; Airtel Africa, up 8.2p at 352.6p; Convatec, up 3.9p at 202.2p; and DCC, up 115.0p at 6,005.0p. The biggest fallers were SSE, down 74.0p at 2,331.0p; Diageo, down 46.5p at 1,535.5p; Imperial Brands, down 73.0p at 2,696.0p; British American Tobacco, down 116.0p at 4,591.0p; and Coca-Cola Europacific Partners, down 170.0p at 6,670.0p.
Monday's global economic calendar includes manufacturing PMI reports, eurozone unemployment figures, and German retail sales data. Next week's UK corporate calendar features a trading update from British American Tobacco on Tuesday and full-year results from water utility Pennon, also on Tuesday.
