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FTSE 100 Live: Oil prices tumble as Bessent says US-Iran deal imminent; miner stocks rally

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Scott Bessent, a man with gray hair and glasses, wearing a blue suit and striped tie, looking to the side.
Welcome back to City PM's FTSE 100 live blog (James Manning/PA Wire)

Welcome back to the City PM FTSE 100 liveblog.

The price of oil tumbled on Tuesday afternoon after a senior Trump ally said that a deal over control of the Strait of Hormuz could be agreed with Iran in the coming days. The price of Brent crude – the international benchmark for oil – tumbled more than four per cent following his remarks.

“We’re in talks with the Iranians and I think there is a chance we may have a deal today or tomorrow to open the strait,” the US Treasury secretary said on CNBC, adding he believed it could restore “free movement” to the key oil artery.

The price of oil had drifted lower yesterday after Donald Trump called off strikes on Iran but progress towards a finalised peace deal continues to stall as the President clashes with Iran’s leadership.

UK’s blue-chip index extended its early gains on Tuesday, boosted by strong showings from London’s listed miners. Fresnillo posted a roaring 75 per cent jump in revenue to $3.4bn (£2.5bn), lifting heavy hitters across the sector.

Glencore and Antofagasta both gained more than four per cent in early trading, while Anglo American put on 3.5 per cent and Rio Tinto jumped 2.5 per cent. Tuesday’s miners boost builds on a strong performance for the sector last week, when Rio Tinto posted a 43 per cent jump in profit and Glencore said it was on track for a record-breaking performance in its trading division.

The FTSE 100 closed 10 points lower on Monday, at 10,857. The index endured a shaky open to make some gains during the afternoon, but slipped during late trading.

We’ll be bringing you the latest market and economic updates throughout the day.

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