London’s FTSE 100 remains stable as Iran tensions lift oil stocks

Monday 13 July 2026 - 10:23

By: Sahili Aya

London’s FTSE 100 remains stable as Iran tensions lift oil stocks

London’s FTSE 100 remained largely unchanged on Monday as investors weighed renewed tensions between Iran and the United States, with rising oil prices supporting energy companies while financial stocks faced pressure.

The UK’s leading stock index benefited from gains among energy firms after crude prices jumped more than 3%, helping to balance concerns linked to escalating military developments in the Middle East.

Energy sector gains offset broader market uncertainty

The blue-chip FTSE 100 index edged up 0.03% to 10,499.88 points by 09:27 GMT, while the mid-cap FTSE 250 slipped 0.1% as markets reacted to heightened geopolitical risks.

Energy stocks emerged as the strongest performers, rising 1.1% as investors anticipated potential disruptions to global oil supplies following renewed exchanges between Washington and Tehran.

The increase in crude prices provided support to major energy companies listed in London, limiting the impact of losses elsewhere in the market.

Iran-US tensions weigh on investor confidence

Market sentiment was affected by reports of intensified military actions involving Iran and US-linked targets in the region. Investors expressed concern about the future of diplomatic efforts aimed at maintaining maritime traffic through the Strait of Hormuz and supporting further negotiations.

The strategic waterway remains a critical route for global energy shipments, meaning any disruption could have significant consequences for oil markets and international economies.

Financial stocks under pressure

While energy companies benefited from higher oil prices, financial stocks were among the weakest-performing sectors. Investment banks and brokerage firms declined as investors reacted to individual corporate developments.

Online trading company Plus500 fell sharply after maintaining its annual outlook, with shares dropping 14.3% and becoming the biggest decliner on the FTSE 250.

Precious metal mining companies also weakened, falling 0.6% as gold prices declined by more than 1%. The move reflected shifting expectations that the US Federal Reserve could maintain higher interest rates for longer amid inflation concerns.

Shares of Endeavour Mining, Fresnillo and Hochschild Mining each fell by around 0.6%.

Vodafone leads FTSE 100 performers

Among individual companies, Vodafone was the strongest performer on the FTSE 100, gaining 4.6% and extending recent momentum.

The telecoms group received a boost after French billionaire Xavier Niel announced plans to acquire a stake worth nearly $6 billion from United Arab Emirates-based telecom company e&.

Markets remain focused on geopolitical developments

The mixed performance of London equities reflects the delicate balance currently facing investors. While higher energy prices are benefiting producers, concerns over geopolitical instability continue to create uncertainty across global markets.

Investors are expected to closely monitor developments in the Middle East, particularly any impact on oil supplies, inflation expectations and central bank policy decisions.