The surge in energy prices continued today after President Trump said he is considering seizing Iranian oil hub Kharg Island.
Despite Brent Crude oil trading above $116 a barrel, the FTSE 100 index posted a stronger performance.
Meanwhile, motorists and banks including Lloyds are awaiting the FCA's final decisions on car finance redress.
FTSE 100 Live Monday
- Car finance verdict due
- Rate hike expectations cool
- Debenhams earnings cheer
Market update: FTSE 100 above 10,000, Glencore and Rio Tinto shares rally
10:03 , Graeme EvansA surge for energy and aluminium prices as the Middle East conflict entered its second month today failed to prevent the FTSE 100 index from returning above 10,000.
London’s top flight followed Friday’s resilient showing by lifting 0.7% or 69.96 points top 10,037.31, with Wall Street markets also poised for a stronger start.
The improvement came as bond yields softened on expectations that slower economic growth will make interest rate hikes less likely.
There was little change in the direction of oil prices, with Brent crude on track for a near 60% rise in March after adding 2.5% to $115.40 a barrel in today’s session.
The latest rise came as President Trump said he is considering seizing Iranian oil hub Kharg Island.
Inflationary pressures have also come from today’s 5% jump for aluminium futures after Iran struck two production sites in the Gulf.
The price increase benefited the shares of Rio Tinto, which has bauxite mines and alumina refineries as well as smelters producing aluminium. Rio lifted 3% or 212p to 6757p at the top of the FTSE 100 index.
Glencore, which has been the most resilient of London’s mining stocks since the start of the war, rose 1.5% or 8.1p to 546.5p.
As one of the world's largest producers and exporters of seaborne traded thermal and steelmaking coal, Glencore has benefited from the commodity’s price surge to a 17-month high as power generators have switched from expensive gas supplies.
BP and Shell added 7.2p to 591.3p and 47p to 3529p after the Brent crude price topped $116 a barrel at one point this morning.
Energy infrastructure businesses SSE and National Grid also lifted by more than 1%, up 37p to 2519p and 15.5p to 1252p respectively.
AstraZeneca, which is the biggest stock in the FTSE 100, offered support following a rise of 1% or 142p to 14,444p.
Burberry rose 2% or 18.5p to 1045p after UBS said a recent sell-off had left the luxury goods group at an attractive level. The bank highlighted a price target of 1410p.
Continued Middle East disruption and the latest rise in price of oil meant British Airways owner IAG fell 4.1p to 352.1p near the bottom of the FTSE 100.
Prudential also dropped 14.5p to 1021.5p, St James’s Place fell 13. 5p to 1153p and JD Sports Fashion dipped 0.7p to 67.3p.
FTSE 100 up 0.6% as miners rally
09:24 , Graeme EvansThe FTSE 100 index has continued its recent outperformance versus European markets by moving 0.6% or 58.30 points higher to 10,025.65 in today’s session.
Rio Tinto shares rose 3% or 212p to 6757p after the price of aluminium surged 5%.
Steelmaking and thermal coal producer Glencore benefited from a 17-month high for the price of coal as power generators have continued to switch from gas. Its shares rose 8.1p to 546.5p.
Energy infrastructure businesses SSE and National Grid also lifted by more than 1%.
AstraZeneca, which is the biggest stock in the FTSE 100, offered support following a gain of 1% or 142p to 14,444p.
BP added 7.2p to 591.3p and Shell improved 47p to 3529p after the Brent crude oil price touched $116 a barrel.
Debenhams Group hikes earnings outlook
08:58 , Graeme EvansThe owner of Boohoo and Debenhams today said it expects to report better-than-expected results as its turnaround plan gathers pace.
Debenhams Group, which was renamed from Boohoo last year, has forecast underlying earnings growth of 36% to £53 million for the year to the end of last month. It had previously guided for underlying profits of £50 million.
The firm, which also runs brands including Karen Millen, also sees double-digit underlying earnings growth in 2026-27 as sales declines continue to improve.
Chief executive Dan Finley said: “Our multi-year turnaround strategy continues at pace.”
He hailed “significant progress” in its overhaul, but added “there is still more to be delivered and we now focus on growth”.
The company’s shares rose 4% to 18p.
FTSE 100 higher despite oil price surge
08:22 , Graeme EvansThe FTSE 100 index has edged up 15.30 points at 9982.65, despite Brent crude’s price to near $116 a barrel.
The improvement follows Friday’s resilient showing, when London’s top flight outperformed sharply lower Wall Street benchmarks.
Signs of a pushback against interest rate hike expectations helped the performance, with Barratt Redrow, Persimmon and British Land shares among those higher.
Shell lifted 32.5p to 3,514.5p after the price of Brent crude topped $115 a barrel. Rio Tinto led the FTSE 100 with a rise of 225p to 6770p.
British Airways owner IAG fell 3.5p to 352.7p at the bottom of the FTSE 100.
Starmer to meet business leaders amid economy fears
07:57 , Graeme EvansKeir Starmer is due to meet representatives from the energy, shipping and financial services industries amid warnings the UK could suffer serious economic damage as a result of the conflict.
Discussions later today are expected to focus on Iran’s ongoing blockade of the Strait of Hormuz, which has disrupted a vital shipping route for the oil and gas industry along with supplies of other products such as fertiliser.
The meeting will also hear an update on the situation in the region from Major General Richard Cantrill, the UK’s maritime operations commander.
FTSE 100 steadies, oil price up 59% in March
07:53 , Graeme EvansFTSE 100 futures have pulled back slightly, despite Brent crude’s rise above $115 a barrel.
IG trading now points to a broadly flat start for London’s top flight, with Wall Street also on course for a small rise.
The Nikkei 225 has fallen 2.8%, while the Hang Seng index has rallied to stand 0.6% lower.
The price of oil is up by 59% in March, which would be the biggest monthly jump on record.
S&P 500 on worst run since 2022, three-month Brent price at $100
07:35 , Graeme EvansThe S&P 500 index is on its worst run since 2022 after Friday’s 1.7% decline resulted in the leading benchmark’s fifth consecutive weekly decline.
The tech-focused Nasdaq fell by more than 3% last week, its worst performance since last April’s Liberation Day sell-off.
The Vix index of volatility ended the week above 30, which is the highest level in almost a year.
Today’s decline for Asia markets came as Iran-backed Houthi militants joined the conflict and the Wall Street Journal reported that President Trump is weighing a military operation to extract Iran’s uranium.
Brent Crude this morning topped $115 a barrel, while Deutsche Bank noted that fears about a longer conflict are evident in a 1.8% rise for three-month Brent crude futures to $100.50.
The bank added: “It’s becoming clear that markets are expecting an extended period of high oil prices, with stagflationary implications for the global economy.
“Interestingly though, the primary concern this morning has shifted back to the growth side rather than inflation.”
It noted that markets are pricing out the likelihood of imminent interest rate hikes and sovereign bond yields have fallen.
Motorists await FCA car finance update
07:12 , Graeme EvansMillions of motorists who were mis-sold a car loan will find out how they will be compensated, as the finance watchdog shares its final plans for an industry-wide scheme.
Final decisions on the long-awaited programme will be published by the Financial Conduct Authority after the close of markets later today.
The regulator set out draft plans last year but it is likely to make several changes after receiving more than 1,000 responses to its consultation.
Under the latest proposals, the scheme will cover car finance agreements taken out between April 6 2007 and November 1 2024.
FTSE 100 seen lower as oil hits $115, aluminium prices rise
07:03 , Graeme EvansThe FTSE 100 index is seen opening 0.3% lower after the Middle East conflict entered its second month with Brent crude oil at $115.15 a barrel, up 2% in today’s session.
Aluminium prices have also risen sharply after Iran attacked two of the region’s major producers.
Asia markets are lower, with Tokyo’s Nikkei 225 down by 3.3% and the Hang Seng index off by 1.2%.
This followed Friday’s sell-off on Wall Street after the Dow Jones Industrial Average and S&P 500 index slid by 1.7% and the Nasdaq Composite reversed 2.2%.
The FTSE 100 outperformed on Friday by closing down 4.82 points at 9967.35, whereas the UK-focused FTSE 250 index lost 1.6%.
