The FTSE 100 rose on Monday as oil prices moved higher amid continued concerns over Middle East supply disruptions, while major continental European equity indices traded lower.
The FTSE 100 was up 0.53% as of 03:15 ET (07:15 GMT). Germany’s DAX declined 0.12%, while France’s CAC 40 fell 0.24%.
Sterling weakened against the US dollar, with GBP/USD down 0.22% at 1.3497.
Strait of Hormuz Meeting Postponed
Oman postponed a planned meeting between Gulf states and Iran concerning management of the Strait of Hormuz, citing the need to reach consensus.
ING commodities strategists said “the delay pushes any prospect of de-escalation even further out of reach.”
The postponement followed Saudi Arabia’s shutdown of its 7 million barrel-per-day East-West pipeline following attacks on the country’s energy infrastructure last week.
ING described the pipeline as “a vital bypass route for Saudi oil exports during disruptions through the Strait of Hormuz.”
The bank said the extent of any potential damage and the likely duration of the shutdown remained unclear. ING maintained its base-case forecast for Brent crude to average $80 a barrel in the fourth quarter, while noting that the escalation increased risks to that outlook and that substantial oil volumes were still moving through the Strait of Hormuz.
Reuters ship-tracking data showed the number of Hormuz transits falling to single digits over the weekend, compared with a 10-day average of 14.
US Central Command separately said it had redirected more than 100 commercial vessels under its blockade of Iranian ports, which was reinstated in July.
UK Government Hosts Business Roundtable
In the UK, Prime Minister Andy Burnham is hosting business leaders, entrepreneurs and local mayors at Downing Street as the government sets out its approach to economic growth.
Participants include founders of Octopus Energy, Revolut, Starling Bank and Oxford Quantum Circuits, as well as executives from HSBC, Aviva, Standard Chartered, Morrisons, Sainsbury’s, BT, Vodafone, BP, Shell, Rolls-Royce and BAE Systems.
The meeting comes ahead of Chancellor John Healey’s first budget on 28 October, against a backdrop of higher borrowing costs and the economic effects of the Iran war.
IEA Cuts 2026 Oil Demand Forecast
ING also highlighted changes to the International Energy Agency’s oil demand forecasts.
The IEA now expects global oil demand to decline by 2.5 million barrels per day year on year in 2026, a reduction that is 940,000 barrels per day larger than its previous forecast. It continues to forecast a 2.6 million barrel-per-day recovery in 2027.
Middle distillate markets also remained tight. The ICE gasoil crack reached record levels near $84 a barrel, while US diesel cracks exceeded $110 a barrel.
ING linked the conditions to Russia’s diesel export ban and US pressure on Ukraine to stop strikes on refineries.
Brent Crude Climbs Above $107
Brent crude futures rose 2.86% to $107.60 a barrel, while US WTI futures gained 2.77% to $102.81.
Gold prices moved lower, with December futures down 1.06% at $4,362.37 and spot gold declining 0.62% to $4,322.29.
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