FTSE 100 Flat as Oil Edges Higher; Barclays, BP Earnings in Focus

Oil prices returned to a three-week high comfortably over the $105 mark on Monday, and those gains looked set to continue on Tuesday. Brent crude, the international benchmark, edged closer to $110 in early trading as peace talks in the Middle East appeared to stall once again.

Middle East Tensions Drive Oil Higher

A report from Axios suggested Iran was keen to make a deal on opening the Strait of Hormuz first and postpone nuclear talks until later. However, word from the White House indicated that President Donald Trump was not a fan of pursuing a deal this way. An official told Reuters that Trump was unhappy with the proposal because it did not address Iran's nuclear program.

During a UN Security Council debate, US envoy Dorothy Shea accused Iran of holding the global economy hostage through its continued blocking of the Strait of Hormuz. Shea alleged that Tehran had laid sea mines, fired on civilian ships, threatened to charge tolls, and struck Gulf capitals.

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China and Russia were also criticised for vetoing a Bahrain-backed Security Council resolution aimed at protecting freedom of navigation in the strait.

The US last night seized two Iranian-linked tankers, which continued to stoke fears that hostilities would persist. Iranian foreign ministry spokesperson Esmail Baghaei posted on X: “Welcome to the return of the pirates — only now, they operate with government-issued warrants, sail under official flags, and call their plunder ‘law enforcement.’”

Market Movers: Barclays, BP Earnings

Investors were also focused on upcoming earnings from Barclays and BP, which could provide further direction for the FTSE 100. The index remained flat as traders weighed the impact of rising oil prices on the broader economy.