Market Overview
On Friday 16 Oct 2026, the FTSE 100 slipped 0.18% to trade at 03:16 ET (07:16 GMT), after having closed 1.08% higher the previous day – its best finish in more than six weeks. Germany’s DAX rose 0.61% while France’s CAC 40 slipped 0.08%. The pound gained 0.33% to $1.3318.
Energy and Commodity Prices
Brent crude futures fell 0.67% to $105.21 per barrel and U.S. West Texas Intermediate dropped 0.76% to $97.24. Gold futures increased 0.86% to $4,205.95 an ounce and spot gold rose 0.34% to $4,184.72.
Geopolitical Context
Iran’s army commander‑in‑chief Amir Hatami warned that the Strait of Hormuz “will remain closed until the enemy respects the rights of the Iranian people,” describing traffic as “very, very limited.” The U.S. Central Command said the United States and regional partners continue to control the strait as commercial vessels keep transiting despite IRGC aggression. In a Newsmax interview, U.S. President Donald Trump said he would not use nuclear weapons against Iran and did not foresee deploying U.S. troops there. U.S. Treasury Secretary Scott Bessent announced sanctions will stay in place until Iran’s “coffers are empty,” following measures on 16 individuals and 10 entities.
Analyst Commentary
ING analysts Warren Patterson and Ewa Manthey noted that oil “remains well‑supported” and that the market is pricing a significant risk premium that would only disappear with a U.S.–Iran agreement. ING also reported that IEA members agreed to release the remaining 100 million barrels of a 400 million‑barrel March pledge, of which only 20 million barrels are diesel versus the roughly 50 million initially suggested, a development that could lead Washington to reconsider diesel export curbs. Media reports said Washington is weighing easing sanctions on some shadow‑fleet tankers to reduce shipping costs.
UK Fiscal and Energy Policy
UK Chancellor John Healey is expected to raise taxes on banks in the Oct 28 budget to fund cost‑of‑living support and strengthen public finances, according to Bloomberg. The proposal could increase the 3 % bank surcharge that sits on top of corporation tax (which was 8 % until 2023), potentially generating about £2 billion if fully reversed. Healey, speaking at IMF meetings in Bangkok, said he will set the decisions in the budget within two weeks and did not rule out the surcharge increase. Prime Minister Andy Burnham pledged “breathing space” for households facing higher energy and mortgage costs after the war with Iran. Healey indicated that any support would be temporary and targeted, with options such as expanding the £150 warm‑homes discount and freezing fuel duty. Bloomberg noted that higher borrowing costs have roughly halved the £23.6 billion fiscal buffer inherited from former chancellor Rachel Reeves. Ofgem has launched a consultation on activating its market‑stabilisation charge to protect energy suppliers from wholesale price volatility ahead of winter.
Corporate Updates
Ithaca Energy announced that CEO Luciano Vasques will retire by 31 March 2027, prompting the board to commence a search for his successor. Man Group disclosed record assets under management of $270.9 billion at the end of September, a 6.8 % quarter‑on‑quarter increase driven by $10.1 billion of investor inflows and exceeding expectations.