British equities moved higher on Friday as investors reacted to signs of continued diplomatic engagement between Washington and Tehran and to fresh corporate activity in the U.K. market.
The FTSE 100 was up 0.23% as of 03:25 ET (07:25 GMT). Germany’s DAX climbed 0.24% and France’s CAC 40 rose 0.21%. Sterling strengthened 0.14% against the dollar, trading at $1.3426.
U.S. President Donald Trump said Washington would respond to Iranian-linked attacks on commercial shipping in the Strait of Hormuz, while reiterating that Iran "can never possess a nuclear weapon." The president’s remarks followed renewed U.S. military strikes, which drew criticism domestically and heightened regional security concerns, even as U.S. officials said they remained committed to pursuing diplomacy.
In parallel with the military actions, regional actors including Qatar, Saudi Arabia, Pakistan, Turkey and Egypt intensified efforts to revive U.S.-Iran nuclear talks. At the same time, the United States and Israel reaffirmed close security coordination. Iran denied responsibility for the incidents in the Strait of Hormuz and defended its nuclear programme as peaceful.
Iran also concluded several days of state funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei, whose burial at the Imam Reza shrine in Mashhad marked the end of a period of national mourning amid the ongoing regional crisis.
Commodity markets moved lower on the day. Brent crude futures fell 0.84% to $75.66 a barrel and WTI declined 0.78% to $71.52. Gold futures slipped 0.44% to $4,122.40 an ounce, while spot gold was down 0.25% at $4,113.65.
UK corporate and market round-up
Apollo Global’s increased interest in easyJet kept the budget carrier at the centre of market attention. Apollo submitted a higher takeover approach worth £5.7 billion on an agreed-in-principle basis, valuing easyJet at £7.15 per share and trumping Castlelake’s earlier proposal.
Regional housebuilder MJ Gleeson reported annual profit in line with expectations but cautioned that geopolitical risks and possible changes to U.K. policy could weigh on its outlook for fiscal 2026.
Vodafone drew attention after UAE telecom group e& agreed to sell its 16.3% stake in Vodafone to Vega, backed by Xavier Niel, for $5.95 billion. The transaction was agreed at a roughly 13% premium to the stake’s prior valuation.
Recruitment firm Hays forecast that operating profit for fiscal 2026 would land at the top end of market expectations, attributing the projection to cost-cutting measures offsetting continued weakness in recruitment activity.
Political development
In domestic politics, Andy Burnham secured 322 nominations from Labour MPs on Thursday, falling one short of the 323 needed to block a rival from standing. The former Greater Manchester mayor is expected to be confirmed as party leader next week and to take office as prime minister on July 20.
Market movers and indicators
Market tickers showed notable moves consistent with the corporate developments: EZJ +13.16%, VOD +10.94%, HAYS +11.27%, APO +1.44% and GLEG +2.15%. The precious metals pair XAU/USD was down 0.45% in the session.
Traders and analysts will be watching whether the combination of diplomatic steps and continued regional security actions keeps volatility contained or prompts renewed reassessment of riskier assets. For now, modest gains across major European indices reflected a tentative easing of investor concerns.