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

(Sharecast News) - London stocks were set to gain at the open on Tuesday as investors mulled the US announcement of fresh sanctions on Iran.

The FTSE 100 was called to open around 15 points higher.

Danske Bank said: "The US 'economic D-Day' against Iran proved to be a limited market mover, as Treasury Secretary Scott Bessent mainly issued a broad warning of secondary sanctions against entities still doing business with Iran, without providing concrete details on timing, monitoring or the scope of enforcement.

"While the US aim is to further isolate Iran and 'sever every economic lifeline', the lack of specifics made the announcement feel more like a warning shot than a decisive escalation, leaving the immediate macro and market impact muted.

"Iran promised to retaliate against expanded US economic sanctions that the Americans said would cut off Iran's economic lifeline, with Tehran expressing confidence that major trading partners like China would resist Washington's pressure campaign."

The US also threatened to impose sanctions against any country maintaining economic ties with Iran.

In corporate news, Melrose Industries said it will launch a $100m claims programme for residents and businesses affected by the May evacuation around the Garden Grove facility in the US run by its GKN Aerospace unit, after a chemical tank containing thousands of gallons of methyl methacrylate overheated and forced authorities to clear a wide area for several days.

In its latest update, Melrose said the Orange County District Attorney has now closed its criminal investigation with no charges, while the company targets 28 September for a full manufacturing restart after permanently decommissioning the tank and investing in safety upgrades.

Elsewhere, Volex said FY2027 profit was set to be ahead of market expectations following a "very strong" start to the year.

The specialist integrated manufacturer of critical power and data transmission products said it delivered 28% constant currency organic revenue growth year-on-year in the four months to July 2026. Growth was broad-based across all five end-markets, led by Complex Industrial Technology, it said.