London’s blue-chip index defied broader European weakness on Tuesday, advancing 0.16% as energy and consumer stocks provided strong support to the market.
Germany’s DAX fell 0.48% and France’s CAC 40 slipped 0.18%, leaving the FTSE 100 as the clear outperformer among major continental indices during the session.
Sterling softened 0.13% against the US dollar to trade at 1.3526, reflecting some caution among currency investors despite equities holding firm.
Energy companies dominated the gainers on the FTSE 100, with Centrica (LSE:CAN) climbing 2.2%, BP (LSE:BP.) gaining 2.1%, and Shell (LSE:SHEL) advancing 1.5% as crude prices moved higher.
Hospitality group Whitbread (LSE:WTB) rose 1.9% and retailer Marks and Spencer (LSE:MKS) added 1.6%, demonstrating that gains were not confined solely to the energy sector.
The UK Maritime Trade Operations confirmed on Tuesday that a vessel travelling outbound through the Strait of Hormuz had been struck by an unknown projectile earlier in the session.
The strike damaged the engine room of the vessel and resulted in one crew casualty, with the remaining crew receiving assistance from the Omani Coast Guard.
Commercial shipping through the strategically vital waterway remained heavily restricted, with Kpler tracking data showing only six commodity vessels passed through the strait on Monday, against a 10-day average of 11.
No very large crude carriers or LNG tankers made the crossing, underscoring the severity of disruption to global energy supply routes through one of the world’s most critical transit points.
Tensions escalated further after a senior Iranian official told Reuters that Tehran would move to a “fully offensive” military posture, warning that Iranian entities should be prepared for further escalation in the Strait of Hormuz.
The official also stated that Iran would carry out a “timely and precise” military attack aimed at breaking the US naval blockade if diplomatic efforts failed.
A 60-day memorandum of understanding signed on 17 June to begin negotiations towards a permanent end to the conflict expired without an agreement, with Washington explicitly ruling out any extension.
During a Fox News telephone interview on Monday, Trump said Iran “should put up the white flag of surrender” and warned Oman of military retaliation if Muscat interfered with US positions around the waterway.
Trump also wrote on Truth Social that “The number one Goal is, and always will be, that Iran cannot have, in any way, shape, or form, a Nuclear Weapon.”
Investors were simultaneously absorbing fresh UK labour market data, with payrolled employment declining by 94,000 year on year in July to 30.3 million, a fall of 0.3%.
Median monthly pay increased 4.2% to £2,642, with health and social work recording the strongest sectoral growth at 5.3% and education registering the weakest increase at 3.3%.
Brent crude futures rose 0.10% to $90.96 per barrel and WTI crude gained 0.35% to $84.04 as traders monitored the ongoing disruption around the Strait of Hormuz.
Gold moved lower despite heightened geopolitical uncertainty, with December gold futures falling 0.32% to $4,458.90 an ounce and spot gold declining 0.31% to $4,402.89.