The FTSE 100 moved slightly higher on Thursday, with gains among gold and silver miners offsetting market uncertainty related to the Iran conflict and shipping through the Strait of Hormuz.
The FTSE 100 was up 0.12% as of 03:20 ET, or 07:20 GMT. Elsewhere in Europe, Germany’s DAX gained 0.11%, while France’s CAC 40 declined 0.21%. Sterling rose 0.08% against the US dollar to $1.3497.
Strait of Hormuz Developments Remain in Focus
The U.S. Central Command said it had redirected 86 commercial vessels through the Strait of Hormuz as part of its naval blockade of Iran, compared with 84 a day earlier. It also said three vessels had been disabled and two others boarded.
Iran’s Persian Gulf Strait Authority added another 11 vessels to its blacklist, bringing the total to 56. The additions included the tanker Kiku and LNG carrier Mubaraz.
U.S. President Donald Trump said on Wednesday that he did not expect the renewed fighting to last “too long,” according to Reuters. The report said U.S. forces were assisting oil shipments through the strait and intercepting Iranian drones.
Trump also proposed renaming the waterway “Trump Strait” in a Truth Social post. Reuters separately reported, citing four sources, that senior administration officials were seeking to prevent further escalation ahead of November’s congressional elections. According to the report, additional military action could be considered after the elections while economic pressure on Tehran continues.
Secretary of State Marco Rubio said Wednesday that Iran would “continue to feel the squeeze” until it abandons any nuclear weapons ambitions and ends support for terrorism. He also said the U.S. would continue targeting threats to American forces and international shipping.
The UAE condemned Iran’s Monday strike on the Saudi-owned tanker Sidr near Oman’s Musandam Peninsula, which killed two Filipino crew members. It also condemned Iranian missile and drone strikes on Bahrain, Kuwait, Jordan and Iraq’s Kurdistan region.
Chinese President Xi Jinping, during a visit to Cairo, called for diplomatic efforts to end the conflict and urged Middle Eastern countries to reject foreign interference during talks with Egyptian President Abdel Fattah el-Sisi.
IRGC Deputy Commander Mostafa Izadi said Tuesday that the force was “fully prepared against the enemy” and would use its missile and drone capabilities in response to hostile action, according to Iranian state broadcaster IRIB.
Fresnillo and Endeavour Mining Rise as Gold Advances
Fresnillo (LSE:FRES) shares gained 1.1%, while Endeavour Mining (LSE:EDV) rose 1.4% as gold and silver prices advanced.
Gold futures increased 1.3% to $4,471.01 an ounce, while spot gold was up 0.86% at $4,425.85.
Oil prices moved lower, with Brent crude down 0.98% at $94.70 a barrel and WTI declining 0.90% to $90.23.
UK Company Updates
Jet2 (LSE:JET2) reported that summer bookings were 8.8% higher than a year earlier.
M&G (LSE:MNG) reported half-year profit above expectations, with inflows from Japanese partner Daiichi Life contributing to the period’s performance amid market volatility associated with the Iran conflict.
EnQuest (LSE:ENQ) narrowed its annual production guidance towards the lower end of its previous range following a five-week outage at the Magnus field caused by a third-party infrastructure disruption. The company also returned to profit for the half year.
Crest Nicholson (LSE:CRST) forecast an annual operating loss of approximately £10 million, citing subdued demand and competitive pricing as factors affecting sales.
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