FTSE 100 holds steady as halted U.S.-Iran talks lift energy stocks

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FTSE 100 steady as U.S.-Iran talks halt

Highlights

FTSE 100 edges down 0.05% to 10,394.30 as Middle East tensions and cancelled U.S.-Iran talks push Brent crude near $79.50, lifting energy stocks like BP (+1.7%) and Shell (+1.0%).
Political uncertainty escalates after Andy Burnham's victorious mayoral campaign raises risk of unfriendly market policies, driving British bond yields to a one-week high.
Admiral Group drops 5% after RBC downgrades ahead of results, while Entain gains on news it may sell its Central and Eastern Europe joint venture.

Market moves and sector drivers

As reported by Reuters, the FTSE 100 is down 5.40 points, or 0.05%, at 10,394.30 by 0948 GMT, while the midcap FTSE 250 falls 0.5% to 23,210.43. The broader market tone stays cautious after planned peace talks between Washington and Tehran in Switzerland are called off.

Global equities fall and oil prices gain as traders had hoped the talks would reduce supply risks around the Strait of Hormuz. Brent crude holds near $79.50 a barrel, helping energy stocks lead support for the London market, with BP up 1.7% and Shell gaining 1.0%.

Healthcare names also provide support, with AstraZeneca up 1.3% and GSK adding 0.9%. By contrast, miners weigh on the benchmark, as Anglo American drops 2.2%, Glencore loses 1.5% and Rio Tinto falls 1.1%.

Political pressure and company-specific impacts

Domestic political developments add another layer of uncertainty for investors. Labour mayor Andy Burnham clears a path on Friday to ousting British Prime Minister Keir Starmer, raising the prospect of renewed political instability in the UK.

Saxo UK Investor Strategist Neil Wilson says the strength of Burnham's mandate may shape how far he pursues policies the market could view as unfriendly, including higher borrowing and redistributive wealth taxes. British government bond yields rise to a one-week high, increasing slightly more than German yields after stronger-than-expected borrowing figures and Burnham's election victory.

Among individual stocks, Admiral Group falls 5% after RBC cuts the insurer to "sector perform" ahead of results. Barratt Redrow names former British Airways finance chief Rebecca Napier as chief financial officer, while the homebuilder's shares slip 0.5%.

Entain edges higher after Reuters reports that the Ladbrokes owner has started exploring options for its joint venture in Central and Eastern Europe, including a possible sale.

In our earlier article on oil prices rising after U.S.-Iran follow-up talks were postponed, we explained how the delay revived supply-risk concerns and brought the geopolitical premium back into crude. We also noted that shipping conditions in the Strait of Hormuz remained the key variable, with tanker traffic, insurance costs, and any renewed security incidents likely to keep prices supported even after the conflict-era spike faded.

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