FTSE 100 Opens Higher As Oil Prices Extend Losses on US-Iran Deal Hopes

The FTSE 100 opened firmly higher on Wednesday as investors welcomed another decline in oil prices, upbeat corporate earnings and growing optimism that a diplomatic agreement between the United States and Iran could help stabilize global energy markets.

London’s benchmark index climbed as much as 62 points to 10,941 in early trading, putting it within touching distance of its record high. The gains came after the index closed at 10,879.38 on Tuesday and were supported by strength across retail, mining and financial stocks.

The positive sentiment followed another sharp drop in crude oil prices. Brent crude slipped below $79 per barrel, extending its losses to more than 10% since last week as markets priced in the possibility of a breakthrough in negotiations over shipping routes through the Strait of Hormuz.

Reports suggested that Qatar has circulated a draft proposal aimed at easing regional tensions, while US Treasury Secretary Scott Bessent indicated an agreement could be reached in the coming days. Lower oil prices have eased inflation concerns globally, providing fresh support for equity markets.

Next leads FTSE 100 after another profit upgrade

Retailer Next emerged as the strongest performer in early trading, with its shares surging more than 6.5% after reporting stronger-than-expected second-quarter sales and raising its full-year profit guidance once again.

The company said full-price sales increased 9.2% during the 13 weeks to August 1, comfortably beating its previous forecast of 4% growth. As a result, Next lifted expected pre-tax profit for the 2026/27 financial year by £25 million to £1.2 billion, continuing a remarkable run of earnings upgrades that has made it one of the FTSE 100’s most consistent performers.

Glencore rallies after announcing $1.5 billion shareholder returns

Mining giant Glencore also helped lift the index after reporting significantly stronger interim results. Underlying EBITDA jumped 86% to $10.11 billion, while revenue rose 49% to $174.4 billion, supported by higher commodity prices and strong trading activity during recent market volatility.

The company announced an additional $1.5 billion in shareholder returns, including a special cash distribution worth around $1 billion and a $500 million share buyback programme.

The update sent Glencore shares more than 4% higher, with other miners including Fresnillo, Antofagasta, Rio Tinto, Anglo American and Endeavour Mining also posting solid gains as investors rotated into commodity producers.

Legal & General beats expectations

Financial stocks also contributed to the positive start after Legal & General reported first-half results ahead of market expectations. Core operating profit rose 7% to £918 million, comfortably exceeding analyst forecasts, while earnings per share increased 11%. The insurer also raised its outlook for full-year earnings growth and increased its interim dividend by 2% to 6.24 pence per share.

Not all blue-chip stocks participated in the rally. HSBC fell more than 2% as investors continued to digest its latest half-year earnings released earlier this week.

Global markets also provided a supportive backdrop after Wall Street extended its rally overnight. The S&P 500 and Dow Jones both reached fresh record highs, while the Nasdaq Composite gained more than 2.5% as technology shares advanced.

FTSE 100 Outlook

The FTSE 100 outlook remains constructive as the index continues to trade near record highs, supported by easing oil prices, resilient corporate earnings and improving global risk sentiment. Investors will continue monitoring developments in US-Iran negotiations, with further progress likely to reduce energy costs and support equities.

Attention will also turn to upcoming UK economic data and earnings from major FTSE 100 companies, which could determine whether the index has enough momentum to break above the 11,000 mark. On the downside, any renewed geopolitical tensions or disappointing corporate results could trigger profit-taking after the recent rally, but the broader trend remains bullish while the FTSE 100 holds above the 10,850-10,900 support zone.