British stocks opened the trading week without a clear bias on Monday as investors weighed a fresh diplomatic proposal from Iran and awaited any sign that Washington would engage. At 03:14 ET (07:14 ET), the FTSE 100 was effectively unchanged, down 0.01%. Sterling was broadly flat against the dollar at 1.3542. Meanwhile, major European bourses posted modest gains with Germany's DAX up 0.3% and France's CAC 40 higher by 0.3%.
The market caution followed reports that Iran had passed a new plan to U.S. officials via Pakistani intermediaries. The proposal would reopen the Strait of Hormuz and either extend an existing ceasefire or make it permanent, while deferring any detailed nuclear negotiations to a later stage.
That suggested approach addresses one of the central obstacles to a quick settlement, but Tehran's leadership is said to be divided internally over the scope of nuclear concessions. A key point of contention remains U.S. demands that Iran suspend uranium enrichment for at least a decade and remove its enriched uranium stockpile from the country. The timing and depth of any concessions were not specified beyond noting a deferral of nuclear talks.
The White House confirmed receipt of the proposal but gave no indication it would pursue discussions, saying the U.S. "will only make a deal that puts the American people first." Separately, President Trump was expected to chair a Situation Room meeting on Iran with his senior national security and foreign policy advisers later on Monday.
Much of the weekend's diplomatic activity was driven by Iran's foreign minister, Abbas Araghchi. His itinerary included two visits to Islamabad, where he briefed Pakistani, Egyptian, Turkish and Qatari mediators and conveyed the proposal onward to Washington via Pakistan. He then travelled to Muscat for talks with Omani officials focused on ensuring safe passage through the strait, and flew to St. Petersburg on Monday morning for discussions with Russian President Vladimir Putin aimed at coordinating a response to the U.S.-Israeli campaign.
President Trump indicated a lack of urgency to reciprocate Tehran's outreach, saying Iranian leaders "can come to us or they can call us," after cancelling a planned Islamabad visit by his envoys. Meanwhile, U.S. Central Command reported that 38 ships were turned back from Iranian waters over the weekend.
UK Roundup
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