Source: Sharecast
At 0825 GMT, the FTSE 100 was 0.2% firmer at 10,422.37. Brent crude was down 1.1% at $102.23 a barrel, while West Texas Intermediate was 2.5% lower at $93.80 following news that Iraq has struck a deal with Turkey to resume oil exports through their territory, meaning it won’t have to go through the Strait of Hormuz.
According to Reuters, crude exports from Iraq's Kirkuk fields to Turkey's Ceyhan port have resumed via pipeline, after Baghdad and the Kurdistan Regional Government (KRG) agreed on Tuesday to restart flows.
Reuters said the KRG confirmed the agreement, saying in a statement the two sides would form a joint committee to prepare for resuming oil exports, with revenue to be returned to the federal treasury.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The region is reorganising, preparing for the possibility of a prolonged conflict. Restoring oil exports fully will take time, and we may soon see physical-market shortages - likely keeping oil prices under upward pressure. Yet, as flows adapt to alternative routes, the initial surge in oil prices seen at the start of the war could ease.
"This matters for global economies already pressured by higher energy costs and rising hawkish central bank expectations."
As far as the Fed is concerned, it’s widely expected to keep the funds rate at 3.50% to 3.75%.
Danske Bank said it expects chair Jerome Powell to "carefully avoid" giving any strong forward-looking signals and emphasise the two-sided nature of the risks stemming from the energy supply shock.
"Most FOMC participants still see the current policy rate level somewhat above neutral, and once the energy uncertainty eases, we expect the Fed to eventually deliver two more rate cuts in June and September," it said. "Extending uncertainty could push the expected cuts further out into the future but not erase them completely, which we expect to be reflected also in the updated dots."
In equity markets, Diploma rocketed as it hiked full-year guidance on the back of robust first-half trading. The industrial group now expects annual organic revenue growth of 9% and an operating margin of 25%. It had previously forecast 6% growth in revenues and a 22.5% margin.
Softcat surged as it lifted its full-year guidance following an "exceptional" first half. The company, which provides IT infrastructure products and services, now expects high single-digit growth in underlying operating profit for FY 2026, up from low single-digit previously.
The upgrade came as it reported a 27.3% increase in underlying operating profit to £93.8m for the six months to the end of January, and a 33% jump in gross invoiced income to £2bn.
Insurer Prudential rose as it lifted its dividend and reported double-digit full-year profit growth. In the year to the end of December 2025, new business profit rose 12% to $2.78bn, while adjusted operating profit was 5% higher at $3.3bn.
The total dividend for the year was 26.60 cents per share, up 15% on the prior year.
Moonpig rallied as it announced a new £65m share buyback and said full-year growth in adjusted earnings per share was set to be at the top end of its guidance of 8% to 12%.
Mining giant BHP was in focus as it announced that Brandon Craig will take over as chief executive officer on 1 July, succeeding current CEO Mike Henry, who will step down after six and a half years in the role. Craig currently serves as BHP's president of the Americas.