London open: FTSE struggles to make headway as oil ticks up despite Trump extension

(Sharecast News) - London stocks struggled to make any headway in early trade on Friday as oil prices ticked higher, with Donald Trump's extension to the pause on attacking Iranian energy facilities failing to provide a meaningful boost to sentiment.

At 0825 GMT, the FTSE 100 was up just 0.1% at 9,978.89. At the same time, Brent crude was 1.2% higher at $109.31 and West Texas Intermediate was up 0.6% at $95.04.

The US president announced the 10-day extension to 6 April on Truth Social on Thursday.

In a brief post, he said: "As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time.

"Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well."

Trump first announced on Monday that the US was postponing "any and all" military strikes against Iranian energy infrastructure following "very good and productive conversations" about a resolution to the hostilities in the Middle East.

The U-turn came just two days after he threatened to "obliterate" the country's power plants if it did not reopen the Strait of Hormuz within 48 hours.

Susannah Streeter, chief investment strategist at Wealth Club, said: "Investors are set to stay in a wary mood at the end of a week infused with nervousness about the trajectory of the war in Iran. President Trump has extended the deadline of his ultimatum to Iran, which initially offered respite from the sell-off, but a pessimistic mood has settled back in.

"The FTSE 100 is set for a struggle in early trade, as oil prices march higher again back to scorching levels. Brent Crude is trading close to $110 a barrel as scepticism sets in about any deal being reached, with the benchmark up more than 65% since mid-February."

Streeter said hopes of a swift resolution to the conflict have faded, energy costs are set to stay painfully high, and the spectre of stagflation is hovering over economies.

"The prospect of stagnation and persistently high prices is a toxic combination and one which central banks will find difficult to solve given the limited tools available," she said

On home shores, figures from the Office for National Statistics showed that retail sales fell less than expected in February.

Sales were down 0.4% following a revised 2% increase in January. Although it marked the first decline in three months, it was not as steep as the 0.8% fall expected by economists.

Supermarkets' sales volumes fell back following a rise in January, the ONS said. Meanwhile, non-store retailers' volumes also fell, with retailers suggesting that consumers brought forward their spending to January to maximise on discounting during the period.

In the three months to February, sales rose 0.7% compared with the three months to November 2025. The ONS attributed the jump to better sales for non-store retailers following a weaker November last year, as well as strong artwork sales volumes in January 2026.

Hannah Finselbach, senior statistician at the ONS, said: "Retail sales rose in the three months to February, with online shops seeing strong sales and art dealers also faring well.

"These were partially offset by a weak period for clothing stores."

Investors were also mulling the latest survey from GfK, which showed that consumer confidence fell to an 11-month low in March, as concerns about the knock-on effects of the US-Iran war on the economy weighing on sentiment.

The overall GfK consumer confidence index fell to -21 in March from -19 in February, marking the lowest reading since April 2025.

In equity markets, AstraZeneca shot higher after saying its respiratory treatment tozorakimab showed a meaningful reduction in flare-ups of chronic obstructive pulmonary disease (COPD) in two late-stage trials.

Metlen Energy & Metals tumbled as it said full-year results will be delayed by nine days after PricewaterhouseCoopers asked for more time to complete its audit of the first financial statements of the firm as a dual-listed company in the UK and Greece.

Harbour Energy slumped after German chemicals firm BASF sold 80m shares in the company in a placing. The shares were sold at 273p each, which is a 9% discount to the closing share price on Thursday.