London pre-open: Stocks to nudge up amid hopes peace talks will resume

(Sharecast News) - London stocks were set to nudge up at the open on Tuesday amid hopes the US and Iran will resume peace talks, despite the start of the US blockade of the Strait of Hormuz. The FTSE 100 was called to open around eight points higher. At 0725 BST, Brent crude was down 1.4% at $91.68 a barrel and West Texas Intermediate was 1.8% lower at $97.29.

Danske Bank said: "In the Middle East, tensions escalated after the US 4pm CET deadline passed, with the US naval blockade of Iranian ports. US Central Command warned vessels that non‑compliance could lead to 'interception, diversion and capture'.

"Despite the blockade, a sanctioned Chinese tanker appears to have been the first vessel to transit the Strait this morning. In response to the US blockade, Iran threatened retaliation against ports in neighbouring Gulf states. While Nato allies declined to participate in the blockade in the evening, Trump later said to reporters that he will reveal details today about countries that are willing to help in the Strait.

"According to media reports, in weekend talks, the US proposed a 20-year suspension of all Iran's nuclear activity, while Iran would have conceded to five years. The fact that the two sides seem to be discussing the timeline, and apparently back-channel diplomacy has continued, we think a deal is possible but it will most likely require several rounds of talks, and meanwhile, the war could escalate."

On home shores, industry data showed that retail sales shone in March after shoppers splashed out on food and drink for Easter.

According to the latest BRC-KPMG retail sales monitor, total UK sales rose by 3.6% in the five weeks to 4 April, compared to growth of 1.1% a year previously and a 1.1% rise in February 2026.

Driving the rise were food sales, which spiked 6.8%. Non-food sales edged up 0.9% higher. Sales in store were 1.4% higher, compared to the modest 0.1% uplift seen online.

Helen Dickinson, chief executive of the British Retail Consortium, said: "An early Easter provided a much-needed boost to food sales as families came together over the long weekend. Non-food was more uneven: demand was robust for computers, toys and homeware, but clothing and footwear continued to struggle."

Easter fell into the March reporting period in 2026, but the later timing in 2025 meant it was included in the April period in 2025.

However, Dickinson added: "Retailers hope that the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain. Damage to supply chains has already been done and rising costs - from shipping and fertiliser to insurance and commodities - are piling yet more pressure onto already stretched retailers."

Looking to the rest of the day, US bank earnings will be in focus as quarterly results from JPMorgan, Wells Fargo and Citigroup are due.

In UK corporate news, BP confirmed that the first quarter oil trading result was set to be "exceptional", after the outbreak of war in the Middle East caused energy prices to soar.

Upstream oil production and operations was forecast to be slightly lower than the fourth quarter, and gas and low carbon energy slightly higher.

But the spike in energy prices at the end of the quarter meant BP now expects stronger realised refining margins in the range of +$0.1bn to $0.2bn .

"The oil trading result is expected to be exceptional," the energy major said.

Recruiter PageGroup said first-quarter gross profit fell 3.9% to £187m as an uncertain economic environment in Europe and the Middle East offset growth in Asia and the Americas.

"Whilst we have seen signs of a normalisation in trading in some of our markets, the increased geopolitical and macro-economic risks due to the conflict in the Middle East create a heightened degree of uncertainty in the outlook for the rest of the year," the company said.

Tobacco company Imperial Brands reiterated its full‑year guidance, saying it continued to expect low‑single‑digit tobacco and double‑digit next generation product net revenue growth, alongside 3-5% growth in group adjusted operating profits.

Imperial also highlighted that it had made a positive start to its 2030 transformation plan, with strong tobacco pricing and NGP innovation supporting expected low‑single‑digit growth in tobacco and NGP net revenue for the first half.