Market Overview

At 08:48 ET (12:48 GMT) the FTSE 100 was up 0.05%, while Germany’s DAX fell 0.25% and France’s CAC 40 lost 0.54%. The pound slipped 0.31% to $1.3434 against the U.S. dollar.

Energy Prices and Commodity Moves

Brent crude rose 2.3% to $86.16 a barrel and U.S. West Texas Intermediate gained 2.4% to $80.82. Spot gold fell 0.14% to $3,971.47 an ounce and gold futures slipped 0.48% to $3,972.62.

Geopolitical Context

Oil gains were driven by heightened Middle‑East tensions after a near‑total collapse in Strait of Hormuz shipping traffic and a sixth consecutive night of U.S. strikes on Iran. Ship crews are increasingly reluctant to transit the strait following the breakdown of the U.S.–Iran memorandum of understanding, reducing vessel movements and adding to supply concerns.

Iran’s health ministry reported that U.S. strikes since June 22 have killed at least 38 people and wounded 400. The latest overnight raids killed eight and wounded 20. Iran’s IRGC claimed retaliatory strikes on U.S. facilities across Syria, Kuwait, Bahrain, Oman and Jordan; Kuwait’s energy ministry said Iranian strikes hit power and water‑desalination stations. A child was wounded by shrapnel after an Iranian weapon was intercepted over Qatar.

U.S. Central Command confirmed a sixth straight night of strikes targeting coastal surveillance, air‑defence and maritime infrastructure, with more than 50,000 U.S. personnel deployed across the region.

Analyst Commentary

Jefferies strategist Mohit Kumar said the bank was reducing risk over the coming weeks, citing geopolitical concerns and the risk of oil remaining elevated. He noted the conflict is now centred on control of the Strait of Hormuz and that Iran is unlikely to relinquish its position easily, adding uncertainty about whether unified Iranian leadership could reach a broader agreement. Kumar nonetheless maintained a constructive view, calling the recent tech and semiconductor sell‑off a buying opportunity given robust earnings, and said he still expects a U.S.–Iran deal “even if it’s a fudge.”

On central‑bank policy, Kumar said persistently elevated oil could draw more hawkish commentary but Jefferies does not expect rate hikes from the Fed, BoE or ECB this year.

Global Market Moves

In Asia, Japan’s Nikkei 225 closed down 3.96% and China’s Shanghai Composite shed 3.05%, with technology and semiconductor stocks leading the declines. Taiwan’s TSMC recovered to finish 1.23% higher in Taipei after elevated capex guidance had earlier unsettled investors.

Political Statements

U.S. President Donald Trump said the United States was “winning big” in Iran and that Americans would see “the fruits” of the campaign “very, very shortly.” White House press secretary Karoline Leavitt said Iran “very much continues to talk” to Washington, describing the strikes as retaliation for Iran firing on commercial vessels in violation of the June accord.

UK Corporate Updates

Wise Ltd reported a 25% rise in first‑quarter net revenue, driven by strong growth in cross‑border payment volumes and customer holdings, and reiterated its full‑year outlook. Burberry Group plc reported 5% growth in first‑quarter comparable store sales, meeting expectations as strong U.S. demand offset weaker spending in Europe and the Middle East affected by the regional conflict.