Market Overview

British equities were largely unchanged on Friday, with the FTSE 100 slipping 0.03% to near‑flat levels as of 07:25 GMT, while Germany’s DAX added 0.28% and France’s CAC 40 gained 0.55%. Sterling firmed 0.09% against the U.S. dollar, trading at $1.3524.

Geopolitical Context

Iran’s Revolutionary Guard Corps claimed its navy struck a U.S. “Saildrone‑type” unmanned vessel in the Strait of Hormuz, saying it had “thwarted its aggressive mission.” The claim followed a United Nations‑IAEA resolution accusing Iran of “non‑compliance” with its non‑proliferation commitments and referring the matter to the UN Security Council – the first such resolution in 20 years. Iran’s UN envoy, Gholamhossein Darzi, dismissed the accusations as “political and not technical in nature.” Preliminary ship‑tracking data showed Strait of Hormuz transits fell to seven on Thursday from 11 the previous day, well below the 10‑day average of 15.

UK Economic Data

The Office for National Statistics reported that Britain’s economy grew a stronger‑than‑expected 0.4% in July, extending robust first‑half performance despite headwinds from the US‑Iran conflict. Annual growth reached 1.6%, the fastest pace since February 2025. ONS Director of Economic Statistics Liz McKeown attributed the growth to “ongoing strength in the services sector,” which was only partially offset by declines in production and construction, and noted that artificial intelligence appeared to be lifting software development.

Commodity Movements

Oil prices retreated, with Brent crude falling 2.12% to $105.35 a barrel and U.S. WTI dropping 1.76% to $100.69. ING analysts said oil’s resilience “reflects a market now repricing both the duration and severity of the conflict, along with a clearer recognition of the mounting threat to regional supply,” adding that Saudi energy infrastructure and Red Sea crude exports are increasingly at risk as Houthi forces target Saudi Arabia after seizing the Yemeni port of Mokha.

Gold futures slipped 0.38% to $4,390.25, while spot gold rose 0.76% to $4,349.24.

Corporate Updates

Berkeley Group warned that weak buyer sentiment and political uncertainty are weighing on housing demand, calling for urgent stamp‑duty and regulatory reforms to boost transactions and homebuilding. Trainline reported that first‑half revenue and net ticket‑sales beat forecasts; slower segment growth was offset by reaffirmed FY2027 guidance and the launch of a £100 million share buyback programme.