Source: Sharecast
The FTSE 100 was called to open around 60 points higher.
In a telephone interview with CBS News on Monday, Trump said: "I think the war is very complete, pretty much.
"[Iran has] no navy, no communications, they've got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones."
Trump said that Iran has "nothing left in a military sense".
His comments helped to lift US markets and sparked a drop in oil prices, after they surged past the $100 a barrel mark for the first time since Russia’s invasion of Ukraine in February 2022.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The fact that investors overreact to every piece of news without questioning feasibility adds another layer of difficulty when navigating markets.
"Part of yesterday’s optimism came after Trump said the war would end ‘soon’ and that the US was ahead of schedule. Concretely, however, the conflict in the Middle East continues at full speed, political developments are not pointing to a near-term resolution, and there is little clarity about the US plans in this war - even officials’ statements sometimes contradict each other."
Oh home shores, UK retail sales growth slowed significantly in February, according to the British Retail Consortium, as an increase in food sales eased and non-food sales turned lower as a result of one of the wettest months on record.
Total retail sales rose by just 1.1% year-on-year in February, following the 2.7% jump seen in January, the BRC-KPMG Retail Sales Monitor showed. That was below the 12-month average growth rate of 2.3%.
"February’s grey, wet weather hit retail sales hard," said BRC chief executive Helen Dickinson
Food sales rose by 2.9% compared with last February, down from a 3.8% jump in January, while non-food sales slipped 0.4% year-on-year after growing 1.7% the month before.
In-store non-food sales inched 0.2% higher, while online non-food sales dropped by 1.3%, as households pulled back after Christmas and the rebound seen in January following a subdued November and December.
Valentine's Day was a "bright spot", Dickinson said, with sales of jewellery, watches and perfume performing better, while health and wellbeing-related purchases held up well.
However, overall trading conditions were tough and look set to continue for retailers, the BRC said.
"While retailers look to Spring and better weather to lift spirits and revive sales, conflict in the Middle East threatens knocking any recovery off course. Prolonged low consumer confidence adds strain on retailers already facing mounting cost pressures, higher taxes and a growing regulatory burden," Dickinson said.
In corporate news, Spirax Group posted improved annual earnings and forecast further organic growth this year, despite market conditions remaining difficult.
The engineering blue chip saw organic revenues rise 5% in the year to December end, to £1.7bn, while adjusted operating profits were 6% stronger at £339.9m.
Chief executive Nimesh Patel said the company had made good progress during the year, despite a “volatile and uncertain” macroeconomic backdrop.
Construction industry supplier Grafton Group said it had bought Irish timber frame maker Cygnum Holdings for an undisclosed sum.
Founded in 1997 and based in County Cork, Cygnum delivers made-to-order offsite timber frames to developers and contractors in the Irish market. Its unaudited 2025 revenue and adjusted operating profit were €45.6m and €7.9m respectively.
Grafton said the deal is expected to be earnings-enhancing in its first full financial year following acquisition and should “deliver an attractive return on invested capital”.
Water utility firm Pennon said that underlying earnings had grown 55% year‑on‑year in the six months ended 9 March, despite ongoing weather‑related cost pressures and higher early‑cycle regulatory costs.
As a result, Pennon said underlying profitability was now expected to be within the range of market expectations, albeit at the lower end of forecasts.
Pennon said it was targeting a 7% return on regulated equity over K8, the five-year price control period running to 2030, with financing and capital expenditure efficiencies in FY26 partly offset by net outcome delivery incentive (ODI) penalties.