FTSE 100 today: Stocks edge lower as Iran, Ukraine uncertainty weigh

British stocks slipped slightly on Friday as heightened US-Iran tensions pushed up oil prices, while Russia's reluctance to endorse European involvement in Ukraine peace negotiations kept investors on edge. The FTSE 100 slipped 0.08% by 03:16 ET (08:16 GMT), while Germany's DAX fell 0.31% and France's CAC 40 dropped 0.10%. The British pound strengthened to $1.3240, up 0.03%.

Iranian Revolutionary Guards declared that the notion of US military bases offering protection was a myth, according to deputy commander Mostafa Izadi speaking to Iranian media. Earlier, the IRGC Navy reported that an LPG carrier had struck a mine east of the Strait of Hormuz. The Guards also claimed to have hit a U.S. early warning radar in Bahrain overnight, as reported by Tasnim.

U.S. President Donald Trump met with Gulf allies at the White House, who requested he refrain from further large-scale strikes. In a Truth Social post, Trump stated that he did not believe in forming a deal with Iran. Jefferies analyst Mohit Kumar suggested that Trump's decision to have the vice president concentrate on domestic matters was an indirect way of implying that he disagreed with the vice president's more conciliatory approach.

Jefferies anticipates a 25 basis point Federal Reserve rate hike in December, with an additional January hike if there is no resolution to the conflict.

Ukrainian President Volodymyr Zelensky announced that European representatives would participate in the forthcoming round of U.S.-mediated peace talks with Russia. He emphasized that these representatives would contribute "a voice" to the negotiations, as opposed to their sideline presence during the Abu Dhabi summit. U.S. envoy Jared Kushner confirmed to reporters that both sides had agreed to expand the next round of negotiations to include European partners, although significant differences remained. He emphasized that the details would be revealed shortly.

Kushner reported that Vladimir Putin maintained Russia's position, including its territorial demands, unchanged. He also indicated that Russia was willing to participate in the negotiations. However, the Kremlin has yet to formalize this agreement. Putin told Kushner and envoy Steve Witkoff in Moscow that Russia's demands had not altered, and the Abu Dhabi talks yielded no breakthrough.

An EU official stated that representatives from five European capitals and the European Commission had met with the U.S. envoys for another multilateral discussion. A prisoner exchange between Russia and Ukraine, the largest since the 2022 invasion, was also reported. Kushner expressed that this exchange would reunite "thousands" of people with their families, though specific figures and a timeline were not disclosed.

As of the reporting, Brent crude for January rose 0.26% to $96.05 a barrel, while WTI for December increased 0.14% to $88.87. Gold futures for December climbed 0.40% to $3,901.15 an ounce, and spot gold gained 0.51% to $3,897.41.