UK Shares Start Week on Strong Note Amid US-Iran Diplomacy; IAG Rises

11:47 AM EST, 11/09/2026 (MT Newswires) -- London's FTSE 100 closed 0.99% higher on Monday as investors assessed the indications of diplomacy between the US and Iran and declining oil prices. US President Donald Trump on Sunday said further military strikes against Iran are highly unlikely while conflict-resolution talks continue to make progress. Despite the diplomatic opening, maritime tensions persisted over the weekend as both nations reported new incidents involving commercial ships in the vicinity of the Strait of Hormuz. Meanwhile, Houthi rebels claimed responsibility for an attack on Sunday that sent falling shrapnel into Saudi Aramco's administrative offices. In the UK, investors will receive the British Retail Consortium's retail sales monitor on Tuesday, followed by gross domestic product, industrial production, trade balance, and construction data and the Royal Institution of Chartered Surveyors' house price balance on Thursday. BofA Global Research forecast a "strong 0.7% qoq 3Q26 GDP print, but weakness in monthly activity data in September." On the corporate front, International Consolidated Airlines Group (IAG.L) climbed 3.41% after Bernstein raised the airline holding company's price target to 5.55 pounds sterling from 5.50 pounds, with a reiterated outperform rating. "IAG has suffered through higher fuel prices this year as all airlines have. Yet margins are still targeted at 12%+, demand is strong, and buybacks are still with us. The company has a better ability than most to withstand higher fuel prices, and still return >50% of market cap to investors over the next 5 years, even if fuel remains expensive as implied in current forward curves," analysts said. On the other hand, Kainos Group (KNOS.L) plunged 11.79% in closing trade as gross margin dropped 3.9% to 31.9% in the first half of fiscal 2027, due to the ongoing use of contractors and supply partners to support rapid growth. At the same time, the information technology company's attributable profit and revenue for the six months ended Sept. 30 increased year over year. "[This] is a short-term staffing decision, and we expect margins to normalise as we replace third parties with employed staff as revenue growth moderates," Kainos said.