Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"

Investing.com -- British stocks traded higher Tuesday, led by mining shares, as a Houthi drone strike on a Saudi airport added a fresh layer of Gulf risk to an already tense regional backdrop.

Mining stocks led the FTSE 100 higher as stronger copper and broader industrial metals prices lifted diversified miners, namely Antofagasta, Anglo American, Rio Tinto and Glencore were among the index’s top gainers. Copper rose 1.5%, aluminium gained about 1%, zinc 1.05% and nickel 1.5%.

As of 07:23 ET (11:23 GMT), the FTSE 100 was up 0.33%. Germany’s DAX added 0.49% and France’s CAC 40 rose 0.08%. Sterling was little changed at $1.3446, up 0.11%.

Yemen’s Houthis said they struck Najran Airport in southern Saudi Arabia with a drone, calling it retaliation for alleged Saudi violations of Yemeni airspace.

The group opened a new front against Gulf shipping on July 20 with a declared blockade of Saudi Red Sea ports, and separately, a cargo vessel was reported struck by an "unknown projectile" in the Strait of Hormuz Monday evening, per the U.K. maritime monitor UKMTO, an incident still under investigation with no confirmed damage or casualties.

Israeli Prime Minister Benjamin Netanyahu publicly broke with U.S. President Donald Trump over a Gaza transition framework, saying Hamas must be fully disarmed before reconstruction begins.

"There are disagreements with President Trump that I don’t hide regarding the recent agreement with Hamas," Netanyahu said after meeting former U.N. Middle East envoy Nickolay Mladenov, according to Al Jazeera.

Israel’s Prime Minister’s Office spokesman Doron Spielman separately said the publicly released roadmap "does not reflect Israel’s positions,” a direct conflict with Board of Peace officials who said Israel was briefed "extensively" as the deal came together; that contradiction was unresolved across sources reviewed.

The Board pushed back, stating IDF withdrawal beyond the "Yellow Line," a military zone approximately 10km north of the Israeli border inside southern Lebanon, would occur only once all weapons and tunnels were decommissioned, as Hamas had committed to mediators.

Earlier Tuesday, retired U.S. General Jack Keane told Fox News that Pakistan and Qatar were "compromised" mediators in Iran talks because they favour Tehran over Washington, and alleged Saudi Arabia had denied the US access to its airbases while counselling restraint.

Trump while speaking to reporters at the Oval Office on Monday said that the Strait of Hormuz could reopen completely “by tomorrow" as Phase 1 of talks with Iran, with denuclearisation to follow as Phase 2, describing the halted strike as larger than "any attack since World War II."

Iran’s Foreign Ministry spokesman Esmail Baghaei denied any negotiations and said a new Iran-Oman maritime arrangement through the Strait was purely a technical vessel-safety measure.

On Truth Social on Monday night, Trump warned that "nothing gets through to Iran unless we want it to, and nothing will get through unless a Deal, or Total Surrender, is accomplished," reiterating that Iran would never possess a nuclear weapon.

Lebanon and Israel began a seventh round of U.S.-mediated talks in Rome Tuesday, with Beirut pressing for further Israeli withdrawals from southern Lebanon and a halt to military operations there.

Brent crude fell 0.10% to $83.70 a barrel and WTI inched lower to 0.72% to $79.89. Gold futures added 0.58% to $4,113.67 while spot gold rose 0.07% to $4,058.03.

BP’s second-quarter underlying replacement cost profit more than doubled to $5.73 billion, boosted by higher oil and gas prices and strong refining margins. The energy major raised its dividend and continued its strategic shift toward core oil and gas operations.

HSBC reported stronger-than-expected first-half profit and lifted its net interest income guidance, supported by lending and wealth management growth. The bank announced a share buyback of up to $1 billion and a second interim dividend as earnings momentum continued.

Travis Perkins reported a 6.3% increase in H1 adjusted operating profit, supported by pricing actions and cost-saving measures. The group said early signs of progress in its turnaround plan are helping offset challenging construction market conditions.

Smith+Nephew cut its full-year revenue growth forecast after continued weakness in its U.S. orthopaedics business weighed on results. The medical devices maker said challenges in its largest market offset strength in other parts of the business.

Segro agreed to a £14.3 billion takeover by Prologis, creating a logistics property group with a market value of about $138 billion. The deal follows shareholder pressure to engage with the U.S. warehouse giant’s acquisition proposal.

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