The FTSE 100 struggled for direction on Monday, while the oil price rose reflecting tension between the US and Iran as the Middle East crisis flared once more.
The FTSE 100 closed up 1.00 point at 10,498.29. The FTSE 250 ended up 25.17 points, or 0.1%, at 23,396.58, while the AIM All-Share fell 2.68 points, 0.4%, to 761.14.
Oil prices advanced as continued Middle East hostilities followed last week’s exchange of fire between the US and Iran.
The US struck Iran for the second day on Monday, prompting Tehran to retaliate against US allies in the Gulf, as the two sides battle over the status of the Strait of Hormuz.
US President Donald Trump vowed to charge all cargo shipped through the key route to pay for keeping the strait open, and to reinstate a blockade on Iranian ships.
“The Hormuz Strait is OPEN,” he posted on Truth Social. “We are reinstating THE IRANIAN BLOCKADE.”
Trump added the US “will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security” through the vital waterway.
Brent crude for September delivery traded higher at 79.42 dollars a barrel on Monday, up from 75.86 dollars on Friday.
“While (oil) prices are still not at crisis levels, the creep upwards will ignite fresh inflationary worries and concerns about how far higher interest rates could move,” said Susannah Streeter, chief investment strategist at Wealth Club.
In London, the oil price gains lifted BP, up 4.6%, and Shell by 2.3%.
Shell also announced the 1.8 billion-dollar sale of Solenergi Power, which includes the Sprng Energy group of companies, to Aditya Birla Renewables.
In European equity markets on Monday, the CAC 40 in Paris ended up 0.3%, while the DAX 40 in Frankfurt rose 0.2%.
In New York, the Dow Jones Industrial Average was down 0.2%, the S&P 500 was 0.4% lower and the Nasdaq Composite declined 0.8%.
On Wall Street, technology stocks continued their volatile run, falling sharply, reflecting heavy declines in Asia, including a hefty sell-off in South Korea’s Kospi which lost 9.0%.
SK Hynix, which made its New York debut on Friday, fell 15% in South Korea, while Samsung Electronics dropped 11%.
On Monday in New York, SK Hynix ADRs fell 6.7% while US technology issues ARM, Marvell Technology and Micron Technology fell 5.1%, 4.8% and 4.0% respectively.
The euro traded lower against the greenback, at 1.1400 dollars on Monday against 1.1434 dollars on Friday. Against the yen, the dollar was trading at 162.32 yen, up from 161.49 yen on Friday.
The pound traded at 1.3378 dollars on Monday afternoon, down from 1.3419 dollars on Friday. Against the euro, sterling eased to 1.1733 euros from 1.1737 euros on Friday.
The US 10-year Treasury yield traded at 4.60% on Monday, widened from 4.56% on Friday, and the US 30-year Treasury yield climbed to 5.09% from 5.06%.
Gold traded at 4,015.30 dollars an ounce on Monday, down from 4,101.39 dollars on Friday.
Back in London and housebuilders advanced, despite rising bond yields, as the Times reported likely incoming prime minister Andy Burnham is considering reviving the Help to Buy scheme when he enters office next week.
Launched by the then chancellor George Osborne in 2013, Help to Buy was designed to stimulate the housing market as it struggled with the fallout from the 2008 global financial crisis.
On the FTSE 100, housebuilders Persimmon and Barratt Redrow rose 2.9% and 1.5% respectively, while on the FTSE 250 Taylor Wimpey climbed 2.1%.
Also on the FTSE 100, the lower gold price weighed on Fresnillo and Endeavour Mining, down 2.9% and 2.2% respectively, while tech share price weakness held back sector investors Polar Capital Technology Trust and Scottish Mortgage Investment Trust, down 1.8% and 2.6% respectively.
Recruitment firms PageGroup and Hays led the FTSE 250 risers, up 20% and 14% respectively.
PageGroup hailed a “good performance” in its second quarter, helped by growth in the Asia Pacific and Americas regions.
The Weybridge, Surrey-based recruiter said gross profit rose 1.3% in the second quarter of 2026 to £197.6 million from £195.2 million a year prior. At constant currency, it declined 0.2%.
Analysts at Panmure Liberum said consensus was for a 5% constant currency decline.
The better-than-expected statement followed Friday’s more upbeat update from Hays boosting hopes of an upturn in sector fortunes.
Dan Coatsworth, head of markets at AJ Bell said: “Last month, PageGroup’s shares hit a 23-year low as market pessimism engulfed the stock. The second quarter commentary has clearly helped to improve sentiment, but certain investors might need more convincing than just one solid trading update.”
Watches Of Switzerland Group climbed 4.2% ahead of a trading statement on Tuesday, and as Reuters reported it has held talks in recent months over potential offers to take the luxury watch retailer private.
Elsewhere, ME Group International rose 9.3% after saying May and June trading had returned to more normal seasonal patterns after a subdued April, but Oxford Nanopore fell 3.6% as it warned first half revenue will fall short of forecasts.
The biggest risers on the FTSE 100 were Vodafone, up 6.05p at 116.15p, BP, up 22.35p at 505.0p, Pearson, up 50.0p at 1,318.0p, BT Group, up 7.10p at 197.15p and Airtel Africa, up 11.2p at 337.8p.
The biggest fallers on the FTSE 100 were Fresnillo, down 77.0p at 2,559.0p, IG Group, down 48.0p at 1,758.0p, Scottish Mortgage Investment Trust, down 38.0p at 1,440.0p, International Consolidated Airlines, down 10.6p at 460.3p and Endeavour Mining, down 80.0p at 3,596.0p.
Tuesday’s global economic calendar has US inflation figures, the UK British Retail Consortium’s retail sales monitor plus trade data in China.
Tuesday’s local corporate calendar has trading statements from recruiter Robert Walters and luxury goods retailer Watches of Switzerland.
Contributed by Alliance News
