Source: Sharecast
At 0830 BST, the FTSE 100 was just 0.1% lower at 10,312.62, while Brent crude was up 2.9% at $111.34 a barrel.
Investors were awaiting Trump’s response to the peace proposal from Iran amid reports the US president is unlikely to accept it because it sets aside any discussions about Tehran’s nuclear program until the war is ended.
According to Reuters, citing a US official, the proposal is unlikely to satisfy the US, which says nuclear issues must be dealt with from the outset.
Patrick Munnelly at Tickmill Group said: "A US official has revealed that President Trump is dissatisfied with Iran's recent proposal aimed at resolving the war, which may temper expectations for a swift conclusion to the two-month-long strife.
"Nevertheless, the ceasefire remains intact for now. European equity investors are taking a cautious stance as they await further developments."
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 equity markets, BP rallied as it posted a better-than-expected first-quarter profit as the oil giant benefited from a surge in oil and gas prices due to the Iran war.
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.
Shell gained, with both also benefiting from rising oil prices.
On the downside, Barclays fell as it said credit impairment charges increased to £823m in the first quarter from £643m in the same period a year earlier but also posted a 6% jump in revenue and a 3% rise in pre-tax profit.
WPP was in the red as the advertising company said sales fell as expected in the first quarter, noting "ongoing uncertainty in the near-term given events in the Middle East".
Taylor Wimpey slumped as the housebuilder warned over rising costs as it reported steady sales and a fall in completions. Peers Persimmon, Barratt and Berkeley also lost ground.
Elsewhere, Upper Crust owner SSP was knocked lower by a downgrade to ‘neutral’ at UBS.
Market Movers
FTSE 100 (UKX) 10,312.62 -0.08%
FTSE 250 (MCX) 22,507.25 -0.32%
techMARK (TASX) 5,849.68 -0.71%
FTSE 100 - Risers
BP (BP.) 589.00p 2.06%
Entain (ENT) 572.20p 1.73%
Anglo American (AAL) 3,678.00p 1.12%
NATWEST GROUP (NWG) 574.00p 0.80%
Diploma (DPLM) 6,970.00p 0.80%
Rio Tinto (RIO) 7,400.00p 0.65%
Lion Finance Group (BGEO) 10,900.00p 0.64%
Coca-Cola Europacific Partners (DI) (CCEP) 7,135.00p 0.56%
Metlen Energy & Metals (MTLN) 34.38p 0.55%
Autotrader Group (AUTO) 503.80p 0.52%
FTSE 100 - Fallers
Barclays (BARC) 413.60p -3.73%
GSK (GSK) 1,980.50p -0.99%
AstraZeneca (AZN) 13,744.00p -0.94%
Antofagasta (ANTO) 3,611.50p -0.72%
Convatec Group (CTEC) 218.80p -0.55%
Rolls-Royce Holdings (RR.) 1,125.60p -0.39%
Standard Chartered (STAN) 1,755.00p -0.39%
Pershing Square Holdings Ltd NPV (PSH) 4,166.00p -0.33%
Babcock International Group (BAB) 1,096.00p -0.32%
Haleon (HLN) 349.10p -0.31%
FTSE 250 - Risers
NCC Group (NCC) 118.00p 4.42%
Discoverie Group (DSCV) 660.00p 4.31%
Premier Foods (PFD) 204.20p 3.81%
4Imprint Group (FOUR) 3,940.00p 3.68%
Helios Towers (HTWS) 199.60p 2.94%
Personal Assets Trust (PNL) 548.00p 2.62%
Baillie Gifford US Growth Trust (USA) 324.00p 2.53%
Balfour Beatty (BBY) 802.00p 2.21%
Serco Group (SRP) 288.20p 2.20%
Jpmorgan European Growth & Income (JEGI) 141.00p 2.17%
FTSE 250 - Fallers
Ceres Power Holdings (CWR) 499.00p -4.16%
SSP Group (SSPG) 166.50p -3.28%
Rathbones Group (RAT) 1,990.00p -2.21%
THG (THG) 34.38p -1.89%
Johnson Service Group (JSG) 129.00p -1.30%
Mitie Group (MTO) 169.20p -1.26%
OSB Group (OSB) 522.00p -1.22%
Oxford Nanopore Technologies (ONT) 111.00p -0.87%
Pan African Resources (PAF) 141.70p -0.75%
Worldwide Healthcare Trust (WWH) 336.50p -0.74%