The FTSE 100 traded virtually unchanged on Tuesday as investors kept a close eye on mounting geopolitical risks surrounding the Strait of Hormuz.
The index edged up just 0.02% at 07:28 GMT, while Germany’s DAX fell 0.15% and France’s CAC 40 declined 0.27% across the Channel.
Sterling slipped 0.03% against the U.S. dollar, trading at 1.3535 as broader currency markets remained cautious.
Houthi forces struck several energy facilities in southern Saudi Arabia early on Tuesday, according to the Saudi Energy Ministry, which reported fires at multiple sites and injuries to personnel.
The Saudi-led coalition said 73 people, including women and children, had been injured in recent Houthi attacks on civilian and economic sites, describing the attacks as a “dangerous escalation.”
Shipping data compiled by Kpler showed seven commodity vessels transited the Strait of Hormuz on Monday, compared with eight on Sunday, with the 10-day average dropping to its lowest level since May at just 10 vessels.
Qatar Foreign Ministry spokesperson Majed Al-Ansari told U.S. media that reopening the strait remained the priority and warned of an “industrial catastrophe” if the disruption continued.
Iraqi prime ministerial financial adviser Mazhar Muhammad Salih said diversifying pipeline routes had become formal “state strategy” as Iraq seeks to protect exports of approximately 3.4 million barrels per day.
Iran’s acting defence minister, Brigadier General Majid Ibn Reza, told state broadcaster IRIB that Iran had the technology to strike U.S. warships enforcing the naval blockade.
The U.S. State Department responded by saying Washington would take “decisive measures” and would not allow Iran to “hold the global economy hostage.”
Jefferies strategist Mohit Kumar said positioning in U.S. Treasuries and Bunds had reached stretched levels and indicated that a benign U.S. CPI reading on Friday could prompt a rally in rates markets.
The European Central Bank is due to hold its monetary policy meeting on Thursday, adding another layer of focus for investors already navigating a busy week of events.
The UK government was expected to announce a ban on trade in goods from Israeli settlements in the occupied West Bank, with the Foreign Secretary due to address Parliament on the measure on Tuesday.
Copper reached a record $14,626 a tonne on the London Metal Exchange before trading 0.71% higher at $14,619.95, driven by tight global supply and expectations of expanded U.S. tariffs on copper imports.
Chile also reduced its full-year copper production forecast for a second consecutive quarter, adding further pressure to an already strained global supply picture.
Brent crude climbed 1.72% to $98.67 a barrel, while WTI crude surged 2.94% to $94.17 as energy traders priced in the ongoing Hormuz shipping restrictions.
December gold futures declined 0.5566% to $4,447.10 an ounce, while spot gold was little changed at $4,403.95, reflecting a modest flight from safe-haven assets.
Computacenter (LSE: CCC) said it expects 2026 profit to exceed previous forecasts, supported by demand in its North American operations associated with artificial intelligence infrastructure.
Dunelm (LSE: DNLM) launched a three-year growth plan that includes £100 million of planned cost reductions, signalling a firm commitment to improving margins over the medium term.
Both UK corporate updates offered investors some domestic focus amid a session dominated by macroeconomic and geopolitical headwinds across global energy and commodity markets.