FTSE 100 Gains as Iran Talks Calm Hormuz‑Related Fears

The UK’s FTSE 100 climbed just over 50 points, rising 0.65% to close at 7,700.25, while the pan‑European Stoxx 600 jumped 1.5% to 5,520. The German DAX added 1.3%, France’s CAC 40 rose 0.8% and Italy’s FTSE MIB gained 1.7%.

In the United States, the Dow Jones Industrial Average fell 70 points, a 0.1% dip, the Nasdaq Composite gained 100 points, a 0.5% lift, and the S&P 500 edged up 10 points, a 0.15% rise. The U.S. dollar slipped 0.2% against the euro and the yen, while Brent crude returned to about $81.20 a barrel after a 3% jump to more than $84 earlier in the week.

Oil‑related sentiment eased as European natural‑gas futures fell up to 9.5% after a 60% surge over the past 48 hours. The Qatar LNG plant remains shut, adding to concerns about a potential supply crunch.

The rally was sparked by a New York Times report that Iran’s Ministry of Intelligence had, via a back‑channel, offered to discuss a cease‑fire with the CIA a day after the recent attacks. While officials remain skeptical about an immediate resolution, the prospect of talks has lifted investor confidence.

Asian markets reacted differently. Seoul’s KOSPI was temporarily halted after a 12% plunge, its steepest single‑day drop since 2008, and Thailand’s market was also suspended after falling beyond the 8% threshold. Japan’s Nikkei 225 fell 3.6%, China’s CSI 300 slipped 1.1%, and India’s Nifty 50 declined 1.75%.

In the Gulf, the Dubai and Abu Dhabi exchanges opened for the first time since the U.S. and Israel struck Iran on Saturday. The Dubai index slid 4.9% and Abu Dhabi’s ADX fell 3.3% in early trading.

The U.S. military has pledged to escort tankers through the Strait of Hormuz, and the Pentagon insists no Iranian vessels are currently in the waterway, a reassurance that helped calm fears of a prolonged energy supply disruption.