The FTSE 100 ended Monday’s trading session broadly unchanged as gains among energy companies offset weakness in technology and mining stocks, with investors closely monitoring renewed geopolitical tensions in the Middle East and their implications for global energy markets.
The benchmark index edged up by just one point to close at 10,498.29, while the FTSE 250 added 0.1 percent to 23,396.58. The AIM All Share Index declined 0.4 percent. Across continental Europe, France’s CAC 40 and Germany’s DAX both recorded modest gains, reflecting cautious investor sentiment amid heightened geopolitical uncertainty.
Global financial markets remained focused on developments involving the United States and Iran after renewed military exchanges increased concerns over security in the Strait of Hormuz, one of the world’s most strategically important maritime energy corridors. The waterway facilitates a significant proportion of global seaborne crude oil exports, making any disruption a matter of international economic importance.
United States President Donald Trump announced measures aimed at maintaining freedom of navigation through the strait, including proposals to levy charges on cargo transiting the route to recover security costs. The announcements followed further military exchanges between the United States and Iran, contributing to higher risk premiums across energy markets.
Brent crude oil for September delivery rose to approximately US$79.42 per barrel from US$75.86 at Friday’s close, reflecting market concerns over potential supply disruptions. Although prices remain below levels associated with previous energy crises, the increase renewed debate over inflationary pressures and the possible implications for global monetary policy.
The higher oil price provided support for major energy producers listed in London. Shell gained 2.3 percent while BP advanced 4.6 percent as investors anticipated stronger revenue prospects should elevated energy prices persist.
Shell also announced the sale of Solenergi Power, including the Sprng Energy group of companies, to Aditya Birla Renewables in a transaction valued at approximately US$1.8 billion. The disposal forms part of the company’s ongoing portfolio optimisation strategy as major energy firms continue balancing investments across conventional and renewable energy assets.
Technology shares remained under pressure across global markets following significant declines in Asia. South Korea’s technology sector experienced substantial losses, with SK Hynix and Samsung Electronics both recording sharp declines. The weakness extended into United States trading where semiconductor related companies also traded lower, reflecting continued investor caution towards the sector following recent volatility.
Currency markets reflected a broader shift towards the United States dollar. Sterling weakened against the dollar to US$1.3378, while the euro also eased. United States Treasury yields moved higher, indicating expectations that inflationary risks linked to higher energy prices could influence future interest rate decisions.
Gold prices declined to around US$4,015 per ounce, reducing demand for some precious metals producers. London listed mining companies including Fresnillo and Endeavour Mining ended the session lower as investors rotated towards energy stocks.
United Kingdom housebuilders outperformed the broader market following reports that the incoming British government is considering reintroducing the Help to Buy housing scheme. Shares in Persimmon, Barratt Redrow and Taylor Wimpey all advanced as investors assessed the potential impact of renewed policy support for the housing sector.
Recruitment firms delivered some of the strongest gains during the session. PageGroup surged almost 20 percent after reporting second quarter gross profit that exceeded market expectations, supported by resilient performances across Asia Pacific and the Americas. Hays also advanced following stronger than anticipated trading updates, contributing to renewed optimism within the recruitment sector after an extended period of weaker investor sentiment.
Luxury retailer Watches of Switzerland also gained ahead of its scheduled trading update amid reports that it has received preliminary interest regarding a possible private acquisition.
For African economies, developments in global energy markets remain particularly significant. Many countries across the continent are simultaneously major energy producers and substantial fuel importers. Sustained increases in crude oil prices can strengthen export revenues for petroleum producing nations while increasing fuel import costs, inflationary pressures and fiscal challenges for net importing economies. These contrasting effects highlight the diverse ways international market developments shape economic outcomes across Africa rather than producing a single continental experience.
Investors will now turn their attention to upcoming United States inflation data, Chinese trade figures and British retail sales indicators, all of which are expected to provide further insight into the trajectory of global economic growth and monetary policy during the second half of the year.
