London stocks inch up as US-Iran pause, earnings lift risk appetite
- By Reuters -
- Jul 28, 2026
London’s FTSE 100 edged higher on Monday as a pause in U.S.-Iran hostilities over the weekend sent oil prices lower and boosted risk sentiment globally, while a decline in energy stocks capped gains.
The blue-chip FTSE 100 index rose 0.4% to 10,781.75 points, while the midcap FTSE 250 (.FTMC) also climbed 0.6%.
The U.S. paused its attacks on Iran over the weekend, and a senior Iranian official told Reuters Tehran would do the same if the U.S. bombing pause holds.
Oil prices tumbled more than 7% to about $89.42 a barrel, dragging British energy stocks (.FTNMX601010), 1.5% lower for their biggest one-day drop since the beginning of the month.
Travel and leisure stocks (.FTNMX405010), opens new tab were among the biggest gainers, with a 1.7% advance. IAG (ICAG.L), opens new tab gained 1.5% and Premier Inn owner Whitbread (WTB.L), opens new tab added 1%.
Meanwhile, quarterly earnings also gained momentum. The FTSE 350 telecom services provider index (.FTNMX151020), gained 3.9%, helped by a 4.8% rise in Vodafone (VOD.L), after it raised its forecast to reflect its Safaricom deal, and said it expected to deliver results at the upper end of its new range.
Pharma stocks (.FTNMX201030),added 1.8%, with AstraZeneca <AZN.L> rising 1.7% after it backed its annual and long-term forecasts and topped second-quarter profit expectations.
Results from U.S. Big Tech companies, including Microsoft (MSFT.O), opens new tab and Apple (AAPL.O), will also be crucial to gauge whether the AI-driven rally is sustainable, which could set the tone for broader markets.
Policy statements from the U.S. Federal Reserve and the Bank of England will be watched later this week for hints on the banks’ next likely moves.
Markets are pricing in at least one 25-basis-point rate increase in both economies, with an over 60% chance of a second in the U.S. and over 40% in UK, according to LSEG-compiled data.
Vesuvius (VSVS.L), shares slid about 12.8% to the bottom of the FTSE 250 (.FTMC), opens new tab after a dip in its profit for the first half of the year.