London pre-open: Stocks to edge down as Hormuz impasse drags on

(Sharecast News) - London stocks were set to edge down at the open on Tuesday as the impasse over the Strait of Hormuz dragged on after US President Donald Trump said he would be seeking compensation from Iran for "50 years" of damages.

The FTSE 100 was called to open around 10 points lower. At 0730 BST, Brent crude was up 0.5% at $88.14 a barrel and West Texas Intermediate was 0.7% higher at $82.71.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Risk appetite is weakening globally along with rising oil prices, which fuel global inflation expectations and push yields higher. US crude is consolidating near $82pb after a more than 6% surge on Monday on the back of little progress in US-Iran negotiations. Trump reportedly made new demands of Iran - including compensation for people killed and damages in a war it didn't start. It doesn't sound promising for an immediate peace deal.

"So, risks are tilted both ways, pricewise, as investors continue to react strongly to Donald Trump's peace hopes. But concretely, Washington's peace promises have been unfounded since the beginning of this war, and there is no guarantee that the current diplomacy will lead to any kind of lasting peace. Spot prices are rising faster than futures, hinting that investors are back to trading worries about tighter short-term oil supply due to a prolonged closure of the Strait of Hormuz, while traffic across the Red Sea is also being threatened by Houthi attacks. On the other hand, a credible reopening of the Strait, a peace deal and/or further promises from Washington could knock a lot of premium out of the front end very quickly."

On home shores, industry data showed that growth in retail sales eased in July as non-food sales took a hit from the heatwave.

According to the latest BRC-KPMG retail sales monitor, total sales rose 1.3% year-on-year following 2.5% growth in July 2025. This was below the 12-month average of 1.8% growth.

Food sales were up 3.8% last month following 3.9% growth in the same month last year, while non-food sales fell 0.7%, having risen 1.4% in July 2025.

In-store non-food sales declined by 1.9% following a 1.9% increase in July last year, while online non-food sales rose 1.3%, an improvement on July 2025's increase of 0.3%.

Helen Dickinson, chief executive at the British Retail Consortium, said: "July saw modest sales growth, with food sales boosted by the final week of the World Cup. Non-food sales were hit by the decline in footfall as shoppers avoided the heat. Clothing was a bright spot, driven by demand for affordable summer essentials, while footwear struggled to keep up. Shoppers also prioritised smaller indulgences such as beauty products and fashion jewellery, while delaying bigger-ticket purchases including furniture and computing.

"Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year. Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs. If the Government wants to drive growth and keep inflation under control, it must reduce the cost of doing business by tackling the taxes and regulatory burdens that are holding back investment and putting upward pressure on prices. These include business rates, new packaging taxes, and the rising costs of employment."

In corporate news, InterContinental Hotels said it was on track to meet full-year earnings estimates as it reported a 10% jump in profits driven by better-than-expected demand globally.

The Holiday Inn owner said revenue per available room - a key industry metric - grew 4.1% as trading in the US accelerated in the second quarter, growth in Greater China continued and a good performance elsewhere in Europe and Asia offset challenges in the Middle East. Operating profit came in at $665m.

Thermal energy and fluid technology firm Spirax Group said that group profits had risen sharply in the first half, with margins also improving as it delivered organic growth ahead of global industrial production and reiterated its fullyear guidance.

Statutory operating profits jumped 44% to �154.2m, with the statutory margin widening 490bps to 17.9%, while adjusted operating profits rose 8% to �171.1m and adjusted margins edged up to 19.8% from 19.3%. Group revenues grew 5% to �863.8m.