The FTSE 100 edged higher on Friday as a rally in gold, silver and copper prices boosted London-listed mining shares, helping the UK benchmark outperform broadly flat European markets despite weaker domestic retail sales and continued uncertainty surrounding sanctions on Iran.
The FTSE 100 was up 0.16% at 03:20 ET (07:20 GMT), while Germany’s DAX declined 0.11% and France’s CAC 40 slipped 0.09%. Sterling strengthened against the dollar, with GBP/USD rising 0.15% to 1.3649.
Mining stocks rally as precious and industrial metals climb
Commodity producers dominated the FTSE 100’s strongest performers as metals prices advanced against a weaker US dollar and heightened demand for safe-haven assets following the US Treasury’s buyback announcement.
Gold futures gained 1.1% to $4,623, while spot gold advanced 1% to $4,566.32. Silver climbed 1.5% and copper increased 1.4%.
Antofagasta (LSE:ANTO) led the FTSE 100 with a 4.3% gain as the copper producer benefited from the rise in the industrial metal.
Glencore (LSE:GLEN) advanced 2.2%, while gold producer Endeavour Mining (LSE:EDV) gained 2.7%. Anglo American (LSE:AAL) was also 2.7% higher and precious metals producer Fresnillo (LSE:FRES) climbed 3.7%.
Iran sanctions keep geopolitical risks in focus
Geopolitical developments remained a major consideration for markets as Washington intensified its pressure on Tehran.
Treasury Secretary Scott Bessent warned of the “toughest sanctions in history” following what U.S. President Donald Trump called on social media platform Truth Social the “most crushing economic operation ever taken” against Tehran.
Trump told 77 WABC that the U.S. was “essentially controlling the straits” and that Iran’s navy, air force and leadership were “gone.”
The US president also announced what he described as an “Economic D-Day,” introducing measures targeting oil-smuggling networks, financial transfers, exchange houses, ship registries and front companies. Countries continuing to maintain economic ties with Iran were warned of “tremendous economic consequences.”
Bessent urged China to “get with the programme” regarding the reopening of the Strait of Hormuz, with China sourcing around half of its energy requirements from the Gulf.
US Central Command said American forces had redirected 67 vessels, disabled three and boarded two as of 20 August as part of enforcement operations connected with the Iran blockade.
Iranian Foreign Minister Abbas Araghchi rejected Trump’s “Economic D-Day” measures as an attempt to divert attention from US debt and rising interest costs. Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the Strait would remain closed until Washington met the conditions of a 14-point Memorandum of Understanding, including ending the blockade and releasing frozen assets.
Jefferies warns sanctions could widen trade tensions
Jefferies strategist Mohit Kumar questioned how effective Washington’s measures would be without broader international participation.
Kumar said the Iran sanctions would prove “ineffective without the support of China, Russia and a number of Asian countries who are active trading partners of Iran,” while warning that sanctions against those countries could risk “creating a wider trading conflict.”
He expects oil prices to remain elevated, potentially maintaining upward pressure on longer-dated bond yields. Jefferies is therefore “staying away from duration sensitive sectors” while favouring technology and financial stocks.
Kumar also noted reports indicating that traffic through the Strait of Hormuz may be greater than official estimates suggest, partly because of ship-to-ship transfers and vessels “going dark” while travelling through the Oman side.
Oil prices retreat from Thursday’s highs
Crude prices moved lower during Friday’s session despite the continuing geopolitical tensions.
Brent crude declined 0.32% to $93.48 a barrel, while WTI fell 0.51% to $86.39, retreating from the highs reached on Thursday.
The pullback meant energy companies did not participate significantly in the FTSE 100’s gains, with mining shares instead providing the main support to the London index.
UK retail sales decline in July
Domestic economic data provided a less encouraging backdrop, with UK retail sales volumes falling 0.5% month on month in July 2026.
The result matched market forecasts but represented the first monthly decline since April, as earlier promotional activity brought some consumer spending forward into June.
Non-food sales volumes dropped 1.3%, reflecting weakness in clothing and household goods. Food store sales increased 0.5%, helped by unusually warm weather and spending linked to the World Cup.
Annual retail sales growth slowed to 1.6% from 3.8% in June, marking the weakest year-on-year increase in three months, according to the Office for National Statistics.
UK round-up
Hunting (LSE:HTG) lowered its 2026 EBITDA guidance following weaker activity across its OCTG and Advanced Manufacturing businesses.
First-half revenue declined 6%, while adjusted profit fell 21%. The company attributed the weaker comparison partly to the absence of Kuwait Oil Company orders and delays to Middle East tendering activity.
These pressures were partially offset by stronger performances from Hunting’s Perforating Systems and Subsea Technologies divisions.
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