British stocks edge higher on Middle East peace deal

The FTSE 100 added 0.25 per cent, the DAX gained 0.23 per cent and the CAC 40 increased 0.33 per cent

British stocks edged higher on Tuesday as investors continued to digest the Iran-US memorandum of understanding, with markets cautiously optimistic ahead of a formal signing ceremony expected in Geneva later this week.

As of 07:14 GMT, the FTSE 100 added 0.25 per cent, the DAX gained 0.23 per cent and the CAC 40 increased 0.33 per cent, while sterling dropped 0.10 per cent against the dollar to $1.3409.

Brent crude slid 0.91 per cent to $82.41 a barrel and WTI crude declined 0.74 per cent to $80.15 as markets continued to price in the partial reopening of the Strait of Hormuz. Spot gold eased 0.40 per cent to $4,326.29 a troy ounce as safe-haven demand remained subdued.

Markets remained focused on the Iran-U.S. deal, with a formal ceremony expected in Geneva coordinated by Switzerland, Pakistan and Qatar.

The framework links sanctions relief and Iran’s economic reintegration to verifiable reductions in its enriched uranium stockpile and acceptance of international inspections.

Trump confirmed on Monday that ships are already transiting the Strait of Hormuz and that full clearance is expected by Friday.

French President Macron, speaking at the G7 in Evian, welcomed the agreement as a very important step towards peace and for the global economy.

In U.K., environment minister Emma Reynolds raised concerns with Ofwat over the proposed £10 billion rescue package for Thames Water, understood to regard the creditors’ offer as “weak.”

Thames Water, which serves 16 million customers and carries nearly £20 billion in debt, faces potential nationalisation if a market-led solution cannot be agreed. Reynolds is set to address Parliament on Tuesday.