Felix Armstrong

The FTSE 100 extended its gains as oil prices eased after a volatile rebound toward $90 a barrel. Conflicting signals over the possible reopening of the Strait of Hormuz and reports of discussions involving Iran, Oman and Qatar kept investors uncertain, while the White House denied that negotiations between the United States and Iran were taking place. Strong Nvidia sales propelled US technology stocks higher, prompting a rotation away from UK banks, oil producers and tobacco companies toward technology firms. Markets also awaited Kevin Warsh’s comments on inflation at Jackson Hole.

The FTSE 100 extended its gains as oil prices retreated after a volatile week driven by uncertainty over supplies and the Strait of Hormuz. Conflicting reports about an Iran-Oman agreement and Qatar’s diplomatic activity contrasted with the White House’s assertion that no US-Iran negotiations were underway. US technology stocks surged after Nvidia reported more than doubled sales, while UK banks, oil producers and tobacco companies weighed on the index, prompting discussion of a rotation toward technology shares. Markets were also preparing for Kevin Warsh’s speech on inflation, with expectations that he would signal further work is needed to bring price pressures under control.

The FTSE 100 recovered after initially being dragged down by BP and Shell as Brent crude fell below $90 per barrel. Hopes of progress toward a US-Iran peace deal and a possible reopening of the Strait of Hormuz supported retail, aviation and housebuilding stocks, while high copper prices lifted mining shares led by Antofagasta. Ofgem raised the UK household energy price cap by four per cent to £1,723 annually, adding to cost-of-living and inflation pressures. Meanwhile, Canada announced $20 billion in retaliatory tariffs after Donald Trump escalated his attacks on the country, intensifying the emerging US-Canada trade dispute.

The FTSE 100 initially fell as declining oil prices weighed on BP and Shell, but later recovered to close around Tuesday’s level, supported by retail, aviation and housebuilding stocks. Brent crude dropped more than 2% to about $86 per barrel amid reports of progress toward a US-Iran peace deal and a possible interim reopening of the Strait of Hormuz. Ofgem also raised the UK household energy price cap by 4% to an annual £1,723, adding pressure to the cost-of-living outlook. Separately, tensions between the United States and Canada escalated after Canada announced $20 billion in retaliatory tariffs.

The UK government has launched a review of business rates valuations for pubs and hotels, led by business rates expert Jerry Schurder, alongside a 20% rates cut for pubs, social clubs and live music venues. Business groups and the Real Rates Reform Alliance say the move is too narrow and fails to honor Labour’s manifesto pledge to replace the wider business rates system. Retailers and restaurants are also facing significant costs but are excluded from the review. The Alliance proposes cutting rates for physical businesses by 37%, funded by a 2% levy on online sales, while the government says the review is intended to make the system fairer.

The FTSE 100 rallied after an initially weak session, with Airtel Africa, InterContinental Hotels Group and Wier among the risers while Auto Trader and Melrose Industries lagged. Investors focused on US Treasury Secretary Scott Bessent’s planned bond-buyback measures and new sanctions against Iran, which Iran’s security chief Mohsen Rezaei warned could trigger retaliation affecting oil exports through the Persian Gulf and Strait of Hormuz. Brent crude fell about 1% to just above $93 per barrel, weighing on Shell and BP. The UK government also announced a review of business-rate revaluations for pubs and hotels.

The FTSE 100 rallied on Monday afternoon after an initially weak session, with Airtel Africa, Wier and InterContinental Hotels Group among the leading risers, while Auto Trader and Melrose Industries fell. Investors were focused on US Treasury Secretary Scott Bessent’s planned bond-buyback measures and new sanctions on Iran, which he described as an “economic D-Day.” Iranian official Mohsen Rezaei threatened retaliation that could disrupt oil exports through the Persian Gulf and Strait of Hormuz. Brent crude slipped about 1% to just above $93 a barrel, weighing on Shell and BP, while the UK government announced a review of business-rate revaluations affecting pubs and hotels.