Investing.com — British stocks edged higher on Friday as signs of continued diplomatic contact between Washington and Tehran eased investor concerns over the Middle East conflict, while ’s higher £5.7 billion takeover approach for kept the airline in focus.

The rose 0.23% as of 03:25 ET (07:25 GMT). Germany’s DAX added 0.24% and France’s CAC 40 edged up 0.21%. Sterling strengthened 0.14% to $1.3426 against the dollar.

U.S. President Donald Trump said Washington would respond to Iranian-linked attacks on commercial shipping in the Strait of Hormuz, while insisting Iran “can never possess a nuclear weapon.” 

The renewed U.S. military strikes prompted criticism at home but also intensified regional security concerns, even as Washington said it remained committed to pursuing a diplomatic resolution.

Hours later, regional mediators including Qatar, Saudi Arabia, Pakistan, Turkey and Egypt stepped up efforts to salvage U.S.-Iran nuclear talks, while the United States and Israel reaffirmed close security coordination. 

Iran rejected accusations over its actions in the Strait of Hormuz and defended its nuclear programme as peaceful, underscoring the widening gap between military escalation and diplomatic efforts.

Iran also concluded several days of state funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei, whose burial at the Imam Reza shrine in Mashhad marked the end of a period of national mourning amid the ongoing regional crisis.

Andy Burnham secured 322 nominations from Labour MPs on Thursday, one short of the 323 needed to prevent a rival from standing, moving to within a vote of an uncontested leadership. 

The former Greater Manchester mayor is expected to be confirmed as party leader next week and to take office as prime minister on July 20.  

fell 0.84% to $75.66 a barrel and declined 0.78% to $71.52. dropped 0.44% to $4,122.40 an ounce, while fell 0.25% to $4,113.65.

UK round up 

Apollo Global trumped Castlelake with a £5.7 billion agreed-in-principle bid for easyJet, valuing the airline at £7.15 per share.

reported annual profit in line with expectations, but warned that geopolitical risks and potential UK policy changes could weigh on the outlook for FY2026.