Key facts
- The UK's FTSE 100 index is expected to open higher on Friday.
- Oil prices, specifically Brent crude, rose approximately 1.5% to $90.
- The White House stated that no negotiations are currently underway with Iran.
- Conflicting information regarding potential deals over the Strait of Hormuz emerged.
- US tech stocks experienced a significant surge, driven by Nvidia's sales performance.
The UK's FTSE 100 index is poised for a higher opening on Friday, according to futures data. This follows a rebound in oil prices on Thursday night, which had reversed earlier weekly losses. Brent crude, the international benchmark, climbed about 1.5% to reach $90 per barrel.
Investor sentiment was influenced by mixed signals regarding oil supply improvements. While Iran's military announced a revenue-sharing agreement with Oman concerning the Strait of Hormuz, it was clarified that this deal does not mandate an immediate reopening of the vital trade route. Further confusion arose from reports of Qatar's prime minister visiting Tehran to discuss a deal related to the Strait of Hormuz.
However, the White House firmly stated that no negotiations are currently taking place between the US and Iran. President Donald Trump's press secretary, Karoline Leavitt, emphasized that discussions will only occur when Iran engages meaningfully, which has not yet been observed.
In parallel, US tech stocks experienced a significant rally on Thursday, spurred by Nvidia's announcement of more than doubling its sales. Dan Coatsworth, head of markets at AJ Bell, noted this rotation from traditional sectors towards tech, contrasting the strong performance of US tech with a more subdued FTSE 100, where HSBC, Shell, AstraZeneca, and British American Tobacco were among the companies weighing down the index.