Source: Sharecast
The FTSE 100 was called to open around 10 points lower.
Danske Bank said: "In the Middle East, mediators are working to bridge gaps between the US and Iran despite the cancellation of face-to-face talks by President Trump over the weekend. Iran's latest proposal calls for phased negotiations, prioritising an end to the war and lifting the US blockade before addressing nuclear issues, a proposal that Trump has criticised.
"Iranian Foreign Minister Abbas Araqchi has visited Pakistan, Oman, and most recently Russia in pursuit of support. Oil prices rose slightly in Monday's trade to USD 109/bbl as markets seem anxious about the risk of renewed escalation of the conflict and/or failure to start talks on a deal to re-open the Strait of Hormuz."
On home shores, industry data showed that shop price inflation slowed in April as retailers cut prices amid fragile consumer confidence.
According to the latest BRC-NIQ shop price monitor, inflation was 1% in April, down from March’s 1.2% rate and below the three-month average of 1.1%. Within that, food prices rose 3.1% - compared to the 3.4% uplift seen a month earlier - but non-food inflation fell 0.1%, reversing March’s 0.1% print.
Helen Dickinson, chief executive of the British Retail Consortium, attributed the slowing rate of shop price inflation to increased discounting across clothing, furniture and DIY goods.
She continued: "With weakening consumer confidence, retailers competed harder on price to stimulate more Spring spending. Food price inflation also slowed as retailers offered discounts on Easter items such as chocolate.
"While we’ve yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to."
Mike Watkins, head of retailer and business insight at NIQ, said: "Increased fuel prices are already leading to higher inflation, and we can expect a similar impact in the food and non-food supply chains in the months to come. However, retailers will look to hold back any price increases as long as possible as alongside fragile consumer confidence, accelerating inflation is likely to negatively affect consumer spending."
In corporate news, BP posted a better-than-expected first-quarter profit as the oil giant benefited from a surge in oil and gas prices.
Underlying replacement cost profit - BP’s preferred measure - came in at $3.2bn in the first three months of the year, up from $1.4bn in the same quarter a year earlier, and from $1.5bn in the final quarter of 2025. This was ahead of analysts’ expectations of $2.6bn.
BP said the underlying result reflects "exceptional" oil trading contribution and stronger midstream performance.
Barclays posted a solid first‑quarter performance, delivering double‑digit returns across all divisions, announcing a fresh share buyback and reiterating its medium‑term targets as it continued to push ahead with its strategic plan.
Group income rose 6% year‑on‑year to £8.2bn, while net interest income excluding its investment banking unit and head office increased 12% to £3.4bn, keeping the group on track to meet its 2026 NII guidance.
It also unveiled plans for a new £500m share buyback once the current £1bn programme is completed.