London pre-open: Stocks to edge up as investors mull GDP

(Sharecast News) - London stocks were set to edge up at the open on Tuesday as oil prices fell on renewed US-Iran peace hopes and as investors mulled the latest UK GDP figures.

The FTSE 100 was called to open around 10 points higher. At 0723 BST, Brent crude was down 1.3% at $73.22 a barrel and West Texas Intermediate was off 1% at $70.03 after Donald Trump claimed that peace talks between the US and Iran would resume in Doha on Tuesday. This was later denied by Iran.

Ipek Ozkardeskaya, senior analyst at Swissquote, said Middle East tensions do not matter much for global risk appetite as long as oil prices remain contained.

"They remain contained mostly because of oversupplied oil markets, thanks to historic strategic reserve releases and oil tankers sailing through the Strait of Hormuz under the radar," she said. "The problem is that a US-Iran peace deal may not be as easily inked as hoped, traffic through the Strait could slow again, and this time strategic reserves will be alarmingly low to reassure investors in the event of a prolonged conflict. As such, the $70pb level could act as a floor beneath the latest retreat in oil prices."

On home shores, data from the Office for National Statistics showed the economy grew 0.6% in the three months to March, in line with expectations and following revised growth of 0.1% in the final quarter of 2025.

Growth was driven by an increase in all three sectors, the ONS said, with the largest contribution from the services sector, which grew 0.8%.

Liz McKeown, director of economic statistics at the ONS, said: "Services were the main driver of growth in the latest quarter, with strengths in computer programming, wholesale and advertising only offset by falls in rental companies and recruitment agencies."

In corporate news, supermarket chain Sainsbury's held annual guidance despite slower first-quarter sales as the war in Iran and Lebanon continued to cause uncertainties for customers.

Like-for-like sales in the in the 16 weeks to 20 June rose 2.1%, down from the previous quarter's 3.1% and estimates of 2.7%.

The company still expects to deliver total underlying operating profit of between �975m and �1.075bn and retail free cash flow of more than �500m.

Serviced offices provider International Workplace Group said that it has increased its 2026 share buyback programme by $50m, taking the total to $150m.

IWG said the move was being carried out under authority granted at its AGM on 19 May, covering up to 145.91m ordinary shares. After purchases already made since the meeting, the maximum number of shares the company may still buy under that authority stands at 138.23m.