The Ftse 100 regained some of its significant losses over the past three weeks, jumping more than 110 points and settling at 10,371 by 2:30 pm this afternoon.
London’s benchmark index held its ground on Monday as strength in oil majors counterbalanced declines across other sectors.
When trading opened this morning, energy stocks climbed 1.2 per cent while shares in BP and Shell each advanced more than one per cent as the US-Iran war continues to impact markets.
The gains came as crude prices remained elevated above $100 per barrel amid ongoing tensions in the Middle East.
Ftse 100 has jumped 100 points today
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President Donald Trump has called on nations reliant on Gulf oil supplies to assist in safeguarding the Strait of Hormuz, which has been closed off by the Islamic Republic.
Travel and leisure stocks bore the brunt of the selling pressure, dropping nearly two per cent. Attention now turns to the Bank of England’s monetary policy meeting later this week.
Most economists forecast the Monetary Policy Committee (MPC) will vote seven-to-two to maintain the bank rate at 3.75 per cent.
The decision comes during an exceptionally busy period for global central banks. The Federal Reserve, European Central Bank, Bank of Japan and Reserve Bank of Australia are all convening this week for the first time since the US-Israeli conflict erupted.
If Iran was to close the Strait of Hormuz, global oil prices would soar | GB NEWS
Shell is among the companies helping the Ftse 100 get back in the green
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PA.While the Australian central bank is anticipated to raise rates by 25 basis points, all other major institutions are expected to leave borrowing costs unchanged.
Policymakers are likely to address concerns over rising energy costs and persistent inflation. David Morrison, senior market analyst at Trade Nation, offered his assessment of the trading session.
He said: “European stock indices began the week on a slightly firmer footing despite persistent geopolitical uncertainty and elevated energy prices.”
Mr Morrison noted that investors drew some reassurance from positive signals in US stock index futures. However, he cautioned that market participants remain wary given the ongoing Middle East conflict and its potential impact on energy markets.
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The analyst added: “The conflict in the Middle East continues to pose risks for energy markets, and by extension, the outlook for global growth.”
Reports emerged that US Energy Secretary Chris Wright anticipates the conflict involving the United States, Israel and Iran will conclude within the coming weeks.
This development prompted a retreat in the dollar, which had rallied strongly in recent sessions. The greenback had pushed the Dollar Index above the significant 100.00 threshold on Friday, reaching its highest level in ten months.
Following the reports about Mr Wright’s expectations, the index slipped back below 100.00 on Monday morning. Currency traders are now monitoring whether the dollar can reclaim and sustain that level on subsequent rallies.