London’s benchmark index edged into positive territory on Friday, driven by a broad rally across precious and industrial metals that lifted mining shares significantly.
The FTSE 100 rose 0.16% as of 07:20 GMT, outperforming Germany’s DAX, which fell 0.11%, and France’s CAC 40, which slipped 0.09%.
Sterling gained ground against the dollar, with GBP/USD rising 0.15% to 1.3649, adding further support to the London market’s relative resilience.
Gold futures gained 1.1% to $4,623, while spot gold advanced 1% to $4,566.32, with silver climbing 1.5% and copper increasing 1.4%.
Antofagasta (LSE:ANTO) was the standout performer on the FTSE 100, surging 4.3% as the copper producer capitalised directly on the industrial metal’s strong price gains.
Fresnillo (LSE:FRES) rose 3.7%, with Anglo American (LSE:AAL) and Endeavour Mining (LSE:EDV) both climbing 2.7%, while Glencore (LSE:GLEN) added 2.2%.
Geopolitical tensions surrounding Iran continued to dominate broader market sentiment, with Washington intensifying pressure on Tehran through sweeping new economic measures.
Treasury Secretary Scott Bessent warned of the “toughest sanctions in history,” following what US President Donald Trump described on Truth Social as the “most crushing economic operation ever taken” against Tehran.
Trump told 77 WABC that the US was “essentially controlling the straits” and that Iran’s navy, air force and leadership were “gone.”
The US president also announced what he described as an “Economic D-Day,” introducing measures targeting oil-smuggling networks, financial transfers, exchange houses, ship registries and front companies.
Countries continuing to maintain economic ties with Iran were warned of “tremendous economic consequences,” with Bessent urging China specifically to “get with the programme” on reopening the Strait of Hormuz.
US Central Command confirmed that American forces had redirected 67 vessels, disabled three and boarded two as of 20 August as part of enforcement operations connected with the Iran blockade.
Iranian Foreign Minister Abbas Araghchi rejected Trump’s “Economic D-Day” measures as an attempt to divert attention from US debt and rising interest costs.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the Strait would remain closed until Washington met the conditions of a 14-point Memorandum of Understanding, including ending the blockade and releasing frozen assets.
Jefferies strategist Mohit Kumar questioned how effective the measures would be, saying the Iran sanctions would prove “ineffective without the support of China, Russia and a number of Asian countries who are active trading partners of Iran.”
Kumar also warned that sanctions against those countries could risk “creating a wider trading conflict,” while noting that oil prices were likely to remain elevated, maintaining upward pressure on longer-dated bond yields.
Jefferies is “staying away from duration sensitive sectors” while favouring technology and financial stocks, according to Kumar, who also flagged that Strait of Hormuz traffic may exceed official estimates due to ship-to-ship transfers and vessels “going dark.”
Brent crude fell 0.32% to $93.48 a barrel and WTI declined 0.51% to $86.39, retreating from the highs reached during Thursday’s session and limiting gains for energy companies.
On the domestic front, UK retail sales volumes fell 0.5% month on month in July 2026, matching market forecasts but marking the first monthly decline since April.
Non-food sales volumes dropped 1.3%, reflecting weakness in clothing and household goods, while food store sales rose 0.5%, supported by warm weather and World Cup-related spending.
Annual retail sales growth slowed sharply to 1.6% from 3.8% in June, the weakest year-on-year reading in three months, according to the Office for National Statistics.
Hunting (LSE:HTG) lowered its 2026 EBITDA guidance after first-half revenue declined 6% and adjusted profit fell 21%, with weaker activity across its OCTG and Advanced Manufacturing businesses cited as key factors.
The company attributed part of the shortfall to the absence of Kuwait Oil Company orders and delays to Middle East tendering, though stronger performances from its Perforating Systems and Subsea Technologies divisions provided partial offset.