FTSE 100 Performance

The FTSE 100 index edged higher by 0.2% on Friday, supported by gains in energy‑related stocks that offset broader market concerns.

Energy and Commodity Prices

Brent crude rose 2.3% to $86.16 per barrel and U.S. West Texas Intermediate increased 2.4% to $80.82 per barrel. Spot gold advanced 1% to $4,015.13 an ounce, while gold futures were up 0.7% at $4,020.05.

Currency

The pound sterling slipped 0.3% against the U.S. dollar, trading at $1.3440.

Geopolitical Context

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

U.S. Military Action and Iranian Casualties

U.S. Central Command confirmed more than 50,000 U.S. personnel are deployed in the region and reported a sixth straight night of strikes targeting coastal surveillance, air‑defence and maritime infrastructure. Iran’s health ministry said U.S. strikes since 22 June 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, with Kuwait’s energy ministry reporting damage to power and water‑desalination stations. A child was wounded by shrapnel after an Iranian weapon was intercepted over Qatar.

Analyst Commentary

Jefferies strategist Mohit Kumar said the firm is reducing risk exposure over the coming weeks because of the geopolitical backdrop, but he does not expect any rate hikes from the Federal Reserve, the Bank of England or the European Central Bank this year. Kumar maintained a medium‑term bullish view on technology and semiconductor stocks, describing the recent sell‑off as a buying opportunity and stating he still expects a U.S.–Iran deal “even if it’s a fudge.”

Asian Market Moves

Japan’s Nikkei 225 closed down 3.96% and China’s Shanghai Composite fell 3.05%, with technology and semiconductor stocks leading the declines. Taiwan Semiconductor Manufacturing Co (TSMC) recovered to end 1.23% higher in Taipei after earlier volatility caused by elevated capital‑expenditure guidance.

UK Corporate Updates

Fintech company Wise reported a 25% increase in first‑quarter net revenue, driven by strong growth in cross‑border payment volumes and customer holdings, and reaffirmed its full‑year outlook. Burberry announced a 5% rise in first‑quarter comparable store sales, meeting expectations as robust U.S. demand offset weaker spending in Europe and the Middle East.

U.S. Political Statements

President Donald Trump told a primetime audience that the United States is “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 Iranian attacks on commercial vessels that violated the June accord.