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(Sharecast News) - London stocks were set to rise at the open on Wednesday as oil prices fell amid hopes of a US-Iran agreement to reopen the vital Strait of Hormuz.
The FTSE 100 was called to open around 21 points higher. At 0720 BST, Brent crude was down 0.5% at $78.99 a barrel and West Texas Intermediate was 0.7% lower at $75.21 after Axios reported that the US was nearing a 60-day interim deal to reopen the Strait of Hormuz without tolls.
According to Axios, citing two regional sources and a US official, the US is aiming to make an announcement on Wednesday.
It was understood the deal under discussion sets up a temporary arrangement between Oman and Iran in the Hormuz strait, which could be extended. According to Axios, all inbound traffic of ships through the strait and into the Gulf would go in a northern lane through Iranian waters.
All outbound traffic through the strait and into the Arabian Sea would go in a southern lane through Omani waters, in coordination with Iran. No tolls or fees would be charged during the 60-day period and the parties would work on clearing naval mines from the median lane of the strait within 30 days.
Once that's cleared, it would be used for inbound and outbound traffic under the terms of a permanent arrangement to be negotiated between Oman and Iran.
In corporate news, retailer Next lifted profit guidance for the second time this year after second-quarter full-price sales smashed estimates due to the hotter summer and the release of pent‑up demand in the Middle East and Northern Europe.
The retailer said it now expects pre‑tax profit of £1.24bn for 2026/27, an increase of £25m from its prior forecast. The latest increase reflects the benefit of £70m in additional full‑price sales during Q2, which added £15m of profit, alongside a £10m uplift from stronger‑than‑expected returns on its equity investments.
Full‑price sales in the quarter rose 9.2%, well ahead of the company's earlier forecast for 4% growth.
Mining giant Glencore reported a markedly stronger first‑half performance, with higher commodity prices and disrupted energy markets driving a sharp uplift across both earnings and cash flow.
Group revenues jumped 49% year‑on‑year to $174.4bn in the first half, up from $117.4bn in H125, while overall group adjusted underlying earnings rose 86% to $10.1bn, supporting a 158% increase in funds from operations to $8.1bn.
First-half profits at Beazley more than halved as a result of "rapidly softening conditions" in the specialty insurance market, with the combined ratio climbing significantly compared with last year.
Pre-tax profit totalled $237.7m over the six months to 30 June, down from $502.5m the year before, while the undiscounted combined ratio - a key measure of insurers' profitability - jumped to 93.3% from 84.9%. Insurance written premiums fell to $3.06bn from $3.19bn.
