Market Overview

The FTSE 100 edged up 0.1% to close marginally higher after earlier gains were wiped out by geopolitical developments. A Houthi ballistic‑missile strike hit the Saudi oil tanker Wafa off Yanbu in the northern Red Sea, marking the eighth Saudi vessel targeted since the maritime blockade began on 22 July. Houthi military spokesperson Yahya Saree warned that attacks in the northern Red Sea would intensify as Riyadh reroutes tankers to avoid the southern blockade.

Iran’s state broadcaster, citing an informed source, said any Iran‑Oman agreement on Hormuz navigation would not automatically reopen the strait and would stay closed while Tehran alleges "U.S. violations" continue. Talks are being conducted exclusively between Tehran and Muscat and "have nothing to do with the United States," according to IRIB. This contradicted earlier Axios reports that Iran had completed an internal approval for a 60‑day interim arrangement, which would have used a northern lane through Iranian waters for inbound Gulf traffic and a southern lane through Omani waters for outbound traffic, with mines cleared within 30 days.

U.S. President Donald Trump told Fox News the strait would reopen "very soon," warning Iran would be "hit really hard" if it backed out.

Currency and European Markets

Sterling held a modest gain at $1.3463, up 0.08% on the day. Germany’s DAX slipped 0.2% while France’s CAC 40 edged up 0.03%.

Commodity Movements

Oil prices extended gains: Brent crude rose 1.3% to $80.42 a barrel and WTI increased 0.45% to $76.13. Gold futures climbed 1.9% to $4,231, and spot gold rose 2.3% to $4,171.89.

UK Economic Indicators

The S&P Global UK Services PMI rose to 52.1 in July from 48.8 in June, delivering the first reading above the 50‑point growth threshold in three months, though still below the long‑run average of 54.2. The Composite PMI reached 52.2. Employment data showed a decline for the 22nd consecutive month, matching a 30‑year record set during the global financial crisis.

UK Corporate Round‑up

  • Hiscox raised its retail growth forecast after first‑half premiums jumped 10.1%.
  • Beazley reported first‑half profit halved as higher claims and a softer market weighed on results.
  • Glencore posted a first‑half earnings surge on strong trading and announced a target listing in Australia.
  • Next lifted its annual profit outlook following stronger‑than‑expected quarterly sales.