London’s blue-chip index traded broadly flat on Wednesday, hovering near multi-week highs despite significant headwinds from a sliding energy sector.
The FTSE 100 remained close to the flatline as weakness among major oil producers offset gains recorded elsewhere across the benchmark index.
Shell and BP both dropped more than 1.5%, making them among the session’s most notable fallers as crude prices retreated sharply.
Global oil prices fell by around 2% on Wednesday, with the decline driven by easing geopolitical tensions in a critical Middle Eastern waterway.
Reports emerged that Iran and Oman had resumed bilateral discussions focused on managing and potentially reopening the Strait of Hormuz, reducing immediate supply concerns.
The prospect of maritime traffic returning through the strategically important waterway eased immediate concerns about global oil supplies, with Brent crude futures falling towards $86 a barrel.
The subdued energy session followed a stronger previous day for UK equities, when sentiment was lifted by the government’s newly announced £10 billion social housing programme.
That programme, aimed at increasing the supply of affordable homes across the country, helped drive positive momentum in housebuilding stocks during Tuesday’s session.
Gains in mining companies helped absorb some of the energy sector’s losses and kept the broader FTSE 100 supported throughout the morning.
Copper climbed to its highest level in six months as inventories held by the London Metal Exchange declined, improving sentiment towards major mining companies.
Rio Tinto PLC (LSE:RIO) and Anglo American PLC (LSE:AAL) both benefited from the stronger backdrop for industrial metals as investors assessed the potential impact of tighter copper supplies.
The copper rally provided a meaningful cushion for the index, reflecting continued investor appetite for miners exposed to industrial demand and energy transition materials.
Gold prices, meanwhile, edged lower as markets awaited forthcoming US inflation figures for further indications about the outlook for monetary policy.
With energy stocks under pressure but miners and other areas of the market providing support, the FTSE 100 remained broadly steady near its recent highs.