Britain’s FTSE 100 index closed the trading week 1.63% higher, lifted by fresh investor optimism surrounding a potential agreement between the United States and Iran.
Washington and Tehran could sign a deal to reopen the Strait of Hormuz as early as next week, Bloomberg News reported, citing senior officials familiar with the matter.
The potential agreement is expected to be signed on the sidelines of the Group of Seven summit taking place in Switzerland, according to the report.
The terms of the memorandum of understanding remain subject to approval by Iran’s Supreme Leader Mojtaba Khamenei, an unnamed European official told Bloomberg News.
News of the potential deal pushed oil prices sharply lower, with crude falling more than 2% on Friday as traders anticipated a loosening of supply constraints in the region.
Energy giants BP (BP.L) and Shell (SHEL.L) bore the brunt of the sell-off, dropping 1.98% and 1.69% respectively, making them the two biggest losers on the blue-chip index.
In corporate news, Flutter Entertainment (FLTR.L) announced plans to delist its ordinary shares from the London Stock Exchange on August 3, while maintaining its New York listing.
The online sports betting and gaming company slipped 3.33% in London by the close of trading, reflecting investor unease over its departure from the British market.
On the economic front, Britain’s monthly gross domestic product fell 0.1% in April 2026, in line with expectations, following a 0.3% rise the previous month, according to the Office for National Statistics.
The April decline marks the first economic contraction since August 2025, driven primarily by a fall in services output, partially offset by growth in construction, while production stagnated during the same period.
“While UK GDP grew by 0.7% in the three months to April, the contraction in April is more indicative of growth prospects for the economy going forward. We expect UK GDP growth to slow in the second quarter,” said Yael Selfin, vice chair and chief economist at KPMG in the UK.
The week ahead will bring a heavy slate of economic data releases for the United Kingdom, covering inflation, labour market figures, the Bank of England’s interest rate decision, retail sales, and public sector net borrowing.
