London’s benchmark index closed Friday’s session in positive territory, with the FTSE 100 finishing the week up 0.22% as investors continued weighing geopolitical and economic pressures.
Markets have remained attentive to the ongoing Iran conflict, now six months old, and its sustained impact on global energy prices and supply routes.
The security of shipments through the Strait of Hormuz has stayed firmly in focus, with diplomatic efforts to resolve the crisis yet to deliver any lasting outcome.
RBC Capital Markets noted a shift in tone from Washington, saying: “It is noteworthy that in the run-up to this inauspicious anniversary, there has been something of a messaging shift from the White House, with imminent conflict conclusion narratives being replaced by ones of the Hormuz being essentially open.”
On the domestic economic front, the UK’s Office for National Statistics reported that the Household Costs Index rose 2.8% in the 12 months to June, slowing from 3.6% in the year to March.
The measure, which tracks the costs faced by UK households, showed annual inflation easing across several household groups, offering some relief to consumers.
The UK’s Competition and Markets Authority secured compensation for customers whose heating-oil orders were cancelled after prices surged amid supply restrictions linked to the Middle East conflict.
The regulator indicated the cancellations may have breached contracts, with affected customers set to receive compensation under a scheme agreed with participating suppliers.
Shell (SHEL) closed 0.88% higher after Bloomberg News reported the energy giant ended years-long discussions with Polish energy group Unimot over the potential sale of its interest in the Russia-linked Schwedt refinery in Germany.
Alphabet’s Google separately agreed to pay 260 million pounds sterling to settle a UK collective action alleging it abused its market position and overcharged app developers through its Play Store, subject to court approval.
Looking to the week ahead, investors will focus on Nationwide house price data, mortgage approvals, and final S&P UK manufacturing, services, and construction PMI readings.
Bank of England Governor Andrew Bailey is also scheduled to speak on 4 September, with markets likely to scrutinise his remarks for signals on the monetary policy outlook.