FTSE 100 climbs as oil dips below $100 for first time in weeks on hopes of US-Iran talks at the UN

From the Newshound archive · first published 21 September 2026 · last updated 22 September 2026.

Oil prices tumbled on Monday after Trump said he would "probably" meet Iranian President Masoud Pezeshkian at the UN General Assembly in New York this week, boosting European markets. Brent crude dropped 3.9% to $99.79 a barrel, falling back beneath the $100 mark, while the FTSE 100 closed 0.8% higher at 10,739.01. Qatar and Pakistan are reportedly conducting back-channel diplomacy between Washington and Tehran. Analysts warn that oil remains more than 40% above pre-war levels and squarely in "alarm bell territory" on inflation.

A ship crossing the Strait of Hormuz was hit by an unidentified projectile on Monday, leaving two crew members injured.

European stocks also rallied, with Germany's DAX gaining 1.1% and France's CAC 40 up 0.9%, despite fresh regional election losses for Chancellor Friedrich Merz.

Iran has reportedly used intermediaries to communicate its conditions for reopening the Strait of Hormuz, though substantial disagreements persist.