Stocks in London saw modest gains on Friday, with lower oil prices and hopes for progress in U.S.-Iran negotiations helping to ease concerns about rising bond yields. The FTSE 100 index rose 0.1% to 10,695.25, while the FTSE 250 index climbed 0.4% to 24,261.14. The AIM all-share index also gained slightly, up 0.2% to 786.36. For the week, the FTSE 100 was up 0.3%, the FTSE 250 was up 0.2%, and the AIM all-share was down 1.6%. In Europe, the CAC 40 in Paris fell slightly, while the DAX 40 in Frankfurt rose 0.6%. In the U.S., the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw modest gains as the London market closed. Brent crude oil prices fell to $106.21 per barrel, down from $107.25 the previous day, as hopes grew that U.S.-Iran negotiations could lead to a de-escalation of tensions in the Middle East. Iran’s foreign minister, Abbas Araghchi, stated that Iran had submitted a proposal to the U.S. that could open the Strait of Hormuz to tanker traffic within seven days, provided certain conditions are met. However, analyst Stephen Innes noted that while the proposal appears new, it is essentially a repackage of a previously existing agreement, compressed into a tighter timeframe. This could leave U.S. President Donald Trump in a difficult political position, as returning to a deal may not provide immediate relief to consumers or sufficient political gain. The British pound rose slightly to $1.3238 against the dollar and fell to €1.1616 against the euro. Economic indicators in the UK showed a slow but steady improvement in consumer confidence, with GfK’s index rising one point in September to minus 13, marking the first time since mid-2024 that the index has increased for three consecutive months. The euro gained against the dollar, and the dollar weakened slightly against the yen. However, bond yields in the U.S. rose further, with the 10-year Treasury yield reaching 5.21% and the 30-year yield hitting 5.52%. Analyst Emmanuel Cau from Barclays noted that while equities have performed reasonably well, the rising bond yields pose a challenge, and further volatility is expected as more economic data is released. On the London stock exchange, Computacenter rose 3.2% after a dividend-related drop, and Glencore gained 2.2% following a rating upgrade from UBS. Oil companies like BP, Shell, and Ithaca Energy fell due to lower oil prices. In the FTSE 250, Harworth Group surged 5.1% after a higher takeover offer from Peel Holdings. Conversely, Raspberry Pi Holdings dropped 5.8% after a sharp rise the previous day. Smaller companies saw mixed results, with Safestay plunging 32% due to a pre-tax loss, while Capricorn Energy rose 14% after withdrawing its support for a takeover bid. Gold prices also increased, reaching $4,282.86 per ounce. The week ahead will see several key economic reports and corporate results, including U.S. nonfarm payrolls and eurozone inflation data.