Investing.com — British equities rallied on Friday, shrugging off a volatile day of Middle East diplomacy and a mixed set of domestic growth figures, as investors bet that a preliminary U.S.-Iran agreement could ease the conflict’s grip on global markets.
The rose 0.85% as of 3:27 ET (7:27 GMT). The gained 1.33% and the increased by 1.47%. Sterling slipped 0.17% against the dollar to $1.3394.
fell 1.96% to $88.61 a barrel, while declined 1.79% to $86.13 a barrel, as deal hopes eased supply fears. fell 0.76% to $4,179.15 a troy ounce.
Data published Friday by the Office for National Statistics showed the UK economy grew by 0.7% in the three months to April 2026, the fifth consecutive three-month-on-three-month expansion and an acceleration from the 0.6% recorded in the prior period.
On the month, however, GDP contracted by 0.1% in April, the first monthly fall since August 2025, driven by a 0.2% drop in services output, which offset a 0.1% rise in construction.
The ONS noted that some of the monthly softness could be attributed to the Middle East conflict, citing cancellations of sporting events and reduced turnover across manufacturing, wholesale and travel businesses.
U.S. President Donald Trump on Thursday said that the United States had “ended the war with Iran,” saying the two sides had agreed to “a very strong memorandum of understanding that is a little conceptual,” which would restart shipping in the Strait of Hormuz and include commitments from Tehran to not pursue a nuclear weapon.
“We made a great deal. There’ll be no nuclear weapons. People will start coming home very soon. It’s pretty much, pretty much completed. We got everything we wanted,” Trump said during a tele-rally for Alabama Senate candidate Barry Moore.
Trump told reporters in the Oval Office that a signing could take place as soon as this weekend in Europe and that Vice President JD Vance would attend if it materialises.
The proposed memorandum of understanding would extend the ceasefire by 60 days, including in Lebanon, immediately reopen the Strait of Hormuz without tolls, and provide Iran with sanctions relief tied to its compliance, with the US lifting its naval blockade in return, according to Axios, citing a U.S. official and a diplomat from one of the mediating countries.
Iran’s response remained guarded. The semi-official Fars news agency said earlier Thursday that officials had not yet approved the text of any agreement, citing an unnamed source close to the negotiating team. Iran was also notably absent from Trump’s list of countries he said had agreed to a deal framework.
The diplomatic whiplash came after an extraordinarily volatile day. Hours before announcing the breakthrough, Trump had threatened to seize Kharg Island, which handles roughly 90% of Iran’s crude exports, and assume total control of the country’s oil and gas markets.
He later said he was not sure “America has the appetite” for such an operation. NBC News reported the U.S. military had been approximately three hours from launching strikes inside Iran when Trump called off the operation.
UK round up
said it intends to delist its ordinary shares from the London Stock Exchange with effect from August 3, saying it had concluded the move was in the best interests of the company and its shareholders, with its shares continuing to trade on the New York Stock Exchange under the symbol FLUT.
Household cleaning products maker warned that the Middle East conflict had pushed sustained cost increases in petrochemical-derived and energy-intensive materials beyond its original expectations, saying it now anticipates FY26 and FY27 adjusted EBITA to come in between 5% and 10% below current analyst forecasts, though it expects performance to normalise heading into Q2 FY27 and beyond.