Source: Sharecast
The FTSE 100 was called to open around 15 points higher. At 0715 BST, Brent crude was up 3.1% at $107.55 a barrel and West Texas Intermediate was 2.1% firmer at $94.38.
Conditions of the Iranian proposal included the US release of frozen Iranian funds, the lifting of oil sanctions and an end to its naval blockade on Iranian ports.
Danske Bank said: "The Iranian proposal would have opened the Strait of Hormuz in seven days in return for the US lifting its port blockade and ‘doing certain things’.
"We think it is possible that a temporary deal to open the strait can be reached ahead of the US mid-terms, but a permanent agreement is another thing. Especially, as the WSJ reported on Friday that Trump has told aides he expects to resume bombing Iran after the November mid-terms. A deadlocked limbo remains our main scenario."
In UK corporate news, CVC said it was not planning to make another offer for Bodycote, which agreed earlier this month to be bought by US private equity firm Veritas Capital in a £1.65bn deal.
"CVC is grateful for the constructive engagement shown by the Bodycote board and management team, and thanks them for the time they have devoted to considering this potential transaction," it said.
Bodycote announced at the start of September that it had agreed to be bought by Veritas - through its special purpose vehicle Vulcan Alpha Bidco - for 940p per share. This comprises 932.8p in cash and the FY26 interim dividend of 7.2p per share.
Ladbrokes-owner Entain trimmed its full-year guidance after Brazil banned online sports betting and gaming.
In a brief update, Entain said it was "disappointed by this sudden development" but confirmed its operations in the country were complying.
Around 5% of Entain’s online net gaming revenue was expected to come from Brazil, although the contribution to group earnings before interest, tax, depreciation and amortisation had been expected to be "modest…given the challenging and highly competitive" market.
It therefore reiterated guidance for underlying EBITDA, of between £910m and £960m, and the margin, for between 21% and 22%, but warned both would now likely come in towards the lower end. Online NGR is set to grow by between 4% and 6%, or by 5% and 7% once Brazil is excluded.
Property development and investment firm Landsec said it has exchanged contracts for the unconditional sale of 123 Victoria Street in Westminster to SevenCitiesLdn, acting for Seven Capital, for £211m.
Of the total consideration, £181m will be received on completion in October, with the remaining £30m payable within 36 months. Landsec will earn 6% interest per year on the deferred amount, ahead of its marginal cost of borrowing.