Portugal Colonial - Oil edges back up, shares steady after US-Iran talks postponed

Equities had largely rallied since the two countries last weekend announced plans to end the conflict and reopen the Strait of Hormuz, fuelling global relief after the war triggered energy shortages and surging inflation.

Almost four months of war have seen crude futures tumble on optimism of heralded settlements in sight, only to rise again as such hopes have been repeatedly dispelled. Stock markets have meanwhile benefited from money continuing to pile into the AI sector.

Friday saw oil prices back up slightly as Brent stood up 0.7 percent at $80.41 a barrel while West Texas Intermediate gained 0.3 percent to $76.85.

Wall Street was shut Friday for a US public holiday, while Europe was muted as London and Paris lost around half of one percent while Frankfurt ended the week with a 0.2 percent dip.

"(London's) FTSE 100 was supported by energy and healthcare (but) risk appetite stayed capped after US-Iran peace talks in Switzerland were called off," said Tickmill Group's Patrick Munnelly.

Wall Street had bounced back Thursday after the Federal Reserve signalled that it would hike borrowing costs this year -- news which boosted the dollar before it too steadied heading into the weekend pause.

The deal to end the Middle East war remained under strain after the flagged talks in Switzerland were postponed and fighting flared between Israel and Hezbollah in Lebanon, whose health ministry lamented 47 dead.

Preparations had been made to host Iranian and US delegations at the Swiss resort of Burgenstock to begin negotiations on implementing the deal signed by President Donald Trump and Iranian counterpart Masoud Pezeshkian.

The agreement's signing was intended to end the US-Israeli campaign against Iran -- which saw five weeks of all-out war until a ceasefire was struck in April -- and reopen the Strait of Hormuz, the key shipping bottleneck whose closure caused global energy prices to soar.

The agreement also kicks off a 60-day period for talks on wider issues, including Tehran's nuclear programme.

"Market euphoria that a deal had been reached has shifted to some scepticism," Kathleen Brooks, research director at trading group XTB, noted Friday as it emerged the talks were not happening with no fresh date announced.

Elsewhere, there was little movement for the British pound or London stock market after veteran UK Labour politician Andy Burnham won a crunch by-election on Friday.

Having secured a parliamentary seat, Burnham is expected to try to oust beleaguered Prime Minister Keir Starmer.

- Key figures around 1545 GMT -

Brent North Sea Crude: UP 0.7 percent at $80.41 a barrel

West Texas Intermediate: UP 0.3 percent at $76.85 a barrel

London - FTSE 100: DOWN 0.4 percent at 10,356.90 points (close)

Paris - CAC 40: DOWN 0.6 percent at 8,425.70 (close)

Frankfurt - DAX: DOWN 0.2 percent at 24,985.82 (close)

New York - Dow: Closed for public holiday

Tokyo - Nikkei 225: UP 0.3 percent at 71,250.06 (close)

Seoul - Kospi: DOWN 0.1 percent at 9,052.42 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: Closed for a holiday

Euro/dollar: UP at $1.1464 from $1.1460 on Thursday

Pound/dollar: UP at $1.3218 from $1.3206

Dollar/yen: DOWN at 161.27 yen from 161.32 yen

Euro/pound: DOWN at 86.73 pence from 86.78 pence

burs-bcp/ajb/cw/pdw

O.Gaspar--PC