London midday: FTSE pushes higher as BP, Shell rally

(Sharecast News) - London stocks were in the black by midday on Tuesday, led higher by BP and Shell after well-received results from the former and as oil prices rose amid reports that Donald Trump is unhappy with Iran's peace proposal.

The FTSE 100 was up 0.5% at 10,370.98, while Brent crude was 2.8% higher at $111.28 a barrel.

Investors were awaiting Trump's response to the peace proposal from Iran amid reports the US president is unlikely to accept it because it sets aside any discussions about Tehran's nuclear program until the war is ended.

According to Reuters, citing a US official, the proposal is unlikely to satisfy the US, which says nuclear issues must be dealt with from the outset.

Susannah Streeter, chief investment strategist at Wealth Club, said: "As the Iran crisis continues seemingly without end, with negotiations stuck at a stalemate, oil prices have ratcheted higher. Brent crude has been trading above $110 a barrel as warnings of an unprecedented energy shock hit home. With the ceasefire largely holding, there seems to be an absence of urgency in reaching an agreement.

"The sticking points appear to be whether Iran's concessions over ceasing its nuclear programme go far enough for the US, while from Tehran's side it wants the US naval blockade lifted and a new plan for transit through the Strait of Hormuz. Every day this crucial waterway remains closed, the higher the costs that filter through supply chains causing fresh financial pain for companies and consumers.

"As crude prices ramp up in the void of hope about a deal being reached anytime soon, it's sent fresh worries cascading through equity markets."

Looking ahead to the rest of the week, five of the 'Magnificent 7' are due to report earnings across the pond, while policy announcements from the Federal Reserve, Bank of England and the European Central Bank will be in focus.

On home shores, industry data showed that shop price inflation slowed in April as retailers cut prices amid fragile consumer confidence.

According to the latest BRC-NIQ shop price monitor, inflation was 1% in April, down from March's 1.2% rate and below the three-month average of 1.1%. Within that, food prices rose 3.1% - compared to the 3.4% uplift seen a month earlier - but non-food inflation fell 0.1%, reversing March's 0.1% print.

Helen Dickinson, chief executive of the British Retail Consortium, attributed the slowing rate of shop price inflation to increased discounting across clothing, furniture and DIY goods.

She continued: "With weakening consumer confidence, retailers competed harder on price to stimulate more Spring spending. Food price inflation also slowed as retailers offered discounts on Easter items such as chocolate.

"While we've yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to."

Mike Watkins, head of retailer and business insight at NIQ, said: "Increased fuel prices are already leading to higher inflation, and we can expect a similar impact in the food and non-food supply chains in the months to come. However, retailers will look to hold back any price increases as long as possible as alongside fragile consumer confidence, accelerating inflation is likely to negatively affect consumer spending."

In equity markets, BP rallied as it posted a better-than-expected first-quarter profit as the oil giant benefited from a surge in oil and gas prices due to the Iran war.

Underlying replacement cost profit - BP's preferred measure - came in at $3.2bn in the first three months of the year, up from $1.4bn in the same quarter a year earlier, and from $1.5bn in the final quarter of 2025. This was ahead of analysts' expectations of $2.6bn.

BP said the underlying result reflects "exceptional" oil trading contribution and stronger midstream performance. Shell also gained, with both benefiting from rising oil prices.

Coca-Cola Europacific Partners rose as it backed full-year guidance after a "good start" to the year.

WPP was up as it said client losses and conflict in the Middle East dented sales in the first quarter, though the decline wasn't as bad as feared as the company reiterated its targets for the full year.

On the downside, Barclays fell as it said credit impairment charges increased to �823m in the first quarter from �643m in the same period a year earlier but also posted a 6% jump in revenue and a 3% rise in pre-tax profit.

Taylor Wimpey slumped as the housebuilder warned over rising costs as it reported steady sales and a fall in completions.

Telecom Plus tumbled as it warned that full-year adjusted pre-tax profits would come in at the bottom end of guidance for �132m to �138m following reduced energy consumption during an unseasonably warm winter.

Travis Perkins fell as it reported a 1.7% drop in first-quarter group revenue on a like-for-like basis amid ongoing challenging trading conditions.

Elsewhere, Upper Crust owner SSP was knocked lower by a downgrade to 'neutral' at UBS.

Market Movers

FTSE 100 (UKX) 10,370.98 0.48%

FTSE 250 (MCX) 22,551.74 -0.12%

techMARK (TASX) 5,870.95 -0.35%

FTSE 100 - Risers

BP (BP.) 590.30p 3.14%

Coca-Cola Europacific Partners (DI) (CCEP) 7,310.00p 2.81%

Shell (SHEL) 3,329.00p 2.46%

NATWEST GROUP (NWG) 583.80p 1.85%

Diploma (DPLM) 7,020.00p 1.67%

Centrica (CNA) 211.00p 1.49%

Metlen Energy & Metals (MTLN) 35.02p 1.36%

HSBC Holdings (HSBA) 1,336.00p 1.30%

Rio Tinto (RIO) 7,430.00p 1.28%

DCC (CDI) (DCC) 5,300.00p 1.24%

FTSE 100 - Fallers

Compass Group 11 (CPG) 28.92p -1.86%

Sainsbury (J) (SBRY) 328.10p -1.44%

Whitbread (WTB) 2,434.00p -1.38%

Experian (EXPN) 2,710.00p -1.22%

British Land Company (BLND) 385.10p -1.10%

London Stock Exchange Group (LSEG) 9,838.00p -1.07%

IMI (IMI) 2,838.00p -1.05%

AstraZeneca (AZN) 13,830.00p -1.02%

Spirax Group (SPX) 7,324.00p -1.00%

SEGRO (SGRO) 698.00p -0.99%

FTSE 250 - Risers

Watches of Switzerland Group (WOSG) 526.50p 3.54%

Ithaca Energy (ITH) 275.60p 3.30%

Harbour Energy (HBR) 295.20p 3.29%

Energean (ENOG) 868.00p 2.24%

Mony Group (MONY) 177.00p 2.02%

Pan African Resources (PAF) 144.44p 1.83%

JPMorgan Japanese Inv Trust (JFJ) 753.00p 1.62%

Baillie Gifford US Growth Trust (USA) 321.00p 1.58%

Shawbrook Group (SHAW) 349.25p 1.53%

International Workplace Group (IWG) 188.10p 1.45%

FTSE 250 - Fallers

Telecom Plus (TEP) 1,238.00p -12.66%

SSP Group (SSPG) 165.70p -6.34%

Travis Perkins (TPK) 516.50p -5.40%

OSB Group (OSB) 516.00p -3.86%

Bytes Technology Group (BYIT) 300.00p -3.67%

Taylor Wimpey (TW.) 80.62p -3.31%

Mitie Group (MTO) 169.40p -2.81%

Raspberry PI Holdings (RPI) 573.25p -2.76%

Aston Martin Lagonda Global Holdings (AML) 40.70p -2.63%

Kier Group (KIE) 199.90p -2.39%