FTSE 100 Live: Stocks to drop as US-Iran peace stalls; Oil climbs higher

The FTSE 100 experienced a decline as the prospect of a US-Iran peace deal appeared to fade, with oil prices rising for the third consecutive day. President Donald Trump expressed a more reserved approach towards negotiations with Iran, stating that they were only "semi-negotiating" with the country. The President cited Iran's severe inflation and lack of funds as the reason for this approach.

This decision came after Israel rejected a 15-point plan proposed by Trump for the Gaza Strip, with Prime Minister Benjamin Netanyahu asserting that Israel's military would not withdraw until Hamas was fully disarmed.

According to the Institute for the Study of War (ISW), Iran is seeking further concessions from the US before agreeing to fully reopen the Strait of Hormuz. The ISW also noted that Iran might employ both "messaging and force" to demonstrate its continued control over the strait. Iranian Foreign Minister Abbas Araghchi hinted at an agreement between Iran and Oman on a temporary transit route through the strait, but stressed that a full reopening would depend on additional conditions.

Senior officials in the Iranian regime have linked any reopening of the waterway to demands such as sanctions relief, the lifting of the US naval blockade, withdrawal of troops from around Iran, and the release of frozen assets. The ISW also reported that the US blockade is causing significant financial strain on Iran's oil exports and economy, but has not yet compelled Iranian decision-makers to alter their stance on the waterway. The liveblog will continue to provide updates on market movements and analysis.