FTSE 100 today: Stocks edge up as Iran diplomacy hopes persist

British stocks saw a slight increase on Monday, as investors balanced continued U.S.-Iran negotiations with the rejection of Tehran's Hormuz proposal by Washington. The FTSE 100 index climbed 0.26%, with Germany's DAX and France's CAC 40 both up by 0.10% and 0.40%, respectively. The British pound weakened by 0.05% to $1.3239. Saudi Foreign Minister Faisal bin Farhan Al Saud traveled to Washington to discuss regional matters in a meeting with U.S. Secretary of State Marco Rubio.

Middle East crude exports increased to 12.8 million barrels per day in September, the highest figure since the war began on February 28, though still below pre-war levels. The U.S. Central Command reported that American forces aided 2,000 transits in the region. Iran's Foreign Minister Abbas Araghchi expressed readiness for genuine diplomacy, but warned of aggression if negotiations lead to an "apocalyptic war."

U.S. President Donald Trump indicated anticipation of further talks during the week, confident that Washington would prevail. Mike Waltz, the U.S. envoy, stated that the seven-day plan was rejected due to its request for billions in frozen assets and sanctions relief. Analysts Jefferies maintained a positive outlook, attributing the optimism to geopolitics and a potential "fudge" deal.

Strategist Mohit Kumar suggested U.S. President Trump seeks a victory before the midterm elections, while Iran suffers under the U.S. blockade. Higher oil prices and gains in the S&P 500 contributed to Monday's market rise. Chancellor John Healey, who succeeded Rachel Reeves in office, plans to emphasize industrialization at the Labour Party's Liverpool conference and plans to commission three floating docks for nuclear submarines at the Clyde shipyard.

His upcoming budget is set to be released four weeks later, with expectations of a more subdued presentation. Prime Minister Andy Burnham condemned the arrests of five individuals near RAF Fairford as deeply disconcerting for local residents. Crude oil futures surged 1.56% to $98.96 a barrel, while WTI gained 1.92% to $94.18. Gold futures, however, declined by 2.97% to $4,193.97 an ounce, and spot gold dropped by 2.88% to $4,161.27.