FTSE 100 flat as surging oil prices lift energy stocks

Published 2 hours ago 29 sources

London’s FTSE 100 held steady on Friday as gains in energy stocks, buoyed by surging oil prices, offset broader market weakness tied to escalating hostilities between the United States and Iran. The blue-chip index opened broadly flat at 10,572, with European peers trading lower as investors weighed geopolitical risk against economic fundamentals. Rreuters Yyoutube

FTSE 100 flat as surging oil prices lift energy stocks

Oil’s Weekly Surge

Brent crude rose to around $85.28 per barrel on Friday, up roughly 1.25% on the day, while West Texas Intermediate climbed about 1.3% to nearly $80 per barrel. Both benchmarks were on track for weekly gains of approximately 12%, heading for consecutive weekly increases as the renewed U.S.-Iran conflict dominated trading. Aalmahriah Ttradingeconomics

The rally accelerated after oil prices jumped roughly 10% on Monday — the largest single-day rise since 2020, according to Semafor — following the reimposition of a U.S. naval blockade on Iranian ports. Reuters reported that Brent reached a one-month high on Tuesday after Washington escalated measures targeting Iran’s oil exports, with President Donald Trump also proposing a 20% levy on cargo transiting the Strait of Hormuz. 11news Rreuters Ssemafor

By midweek, Brent had climbed above $86 per barrel as Iranian and American forces continued trading strikes near the critical energy chokepoint. Ooffshore-technology

Energy Stocks Lead London

Shell led the energy sector higher in London, with its shares gaining as oil-linked revenues improved against the backdrop of tighter supply expectations. BP also advanced as the sector outperformed the wider market. Gglobalbankingandfinance Rreuters

The FTSE 100’s flat performance reflected a tug-of-war between energy gains and weakness in banking stocks, while the DAX fell 0.53% and the Euronext 100 dipped 0.14%. Overnight, Wall Street had closed lower, with the Nasdaq and S&P 500 both under pressure. Yyoutube

Geopolitical Backdrop

The oil market has been volatile since U.S.-Iran hostilities resumed in early March, when prices briefly spiked above $100 per barrel. A fragile ceasefire collapsed in early July after President Trump declared the end of an eight-week truce, according to The Wall Street Journal, triggering renewed strikes on Iran’s southern coastal provinces. Rreuters Wwsj Ffacebook

Analysts noted the widening backwardation in Brent futures — with prompt contracts trading at an $8.92-per-barrel premium to six-month forwards — as a signal of acute near-term supply tightness. Ooffshore-technology