The FTSE 100 was broadly unchanged on Tuesday as investors monitored disruption to shipping through the Strait of Hormuz and reports of further Houthi attacks on energy infrastructure in Saudi Arabia.
The FTSE 100 was up 0.02% at 03:28 ET (07:28 GMT). Elsewhere in Europe, Germany’s DAX declined 0.15%, while France’s CAC 40 fell 0.27%.
Sterling was down 0.03% against the U.S. dollar at 1.3535.
Houthi Attacks and Hormuz Shipping Remain in Focus
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. The 10-day average stood at 10 vessels, its lowest level since May.
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 and U.S. Exchange Statements Over Naval Blockade
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 said Washington would take “decisive measures” and would not allow Iran to “hold the global economy hostage.”
Investors were also awaiting the return of U.S. markets following Monday’s Labor Day holiday, alongside several economic and monetary policy events scheduled later in the week.
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.
UK Government Set to Announce Israeli Settlement Trade Ban
The UK government was expected to announce a ban on trade in goods from Israeli settlements in the occupied West Bank.
The Foreign Secretary was due to address Parliament on the measure on Tuesday.
Copper Reaches Record as Oil Prices Rise
Copper reached a record $14,626 a tonne on the London Metal Exchange before trading 0.71% higher at $14,619.95.
The move came amid 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.
Brent crude increased 1.72% to $98.67 a barrel, while WTI crude rose 2.94% to $94.17.
December gold futures declined 0.5566% to $4,447.10 an ounce, while spot gold was little changed at $4,403.95.
UK Company Round-Up
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.
Leave a Reply