The FTSE 100 was little changed on Friday as stronger-than-expected UK economic growth data was balanced by continued concerns over disruption in the Strait of Hormuz.
The FTSE 100 was down 0.03% at 03:25 ET (07:25 GMT). Elsewhere in Europe, Germany’s DAX gained 0.28% and France’s CAC 40 rose 0.55%. Sterling was 0.09% higher against the US dollar at $1.3524.
UK gross domestic product increased 0.4% in July, exceeding expectations and extending growth recorded during the first half of the year, according to the Office for National Statistics. The economy expanded 1.6% from a year earlier, the fastest annual rate since February 2025.
“Ongoing strength in the services sector was only partially offset by falls in both production and construction,” ONS Director of Economic Statistics Liz McKeown said, adding that artificial intelligence appeared to be supporting software development.
Geopolitical developments remained in focus after Iran’s Revolutionary Guard Corps said its navy had struck a US “Saildrone-type” unmanned vessel in the Strait of Hormuz, claiming it had “thwarted its aggressive mission.”
The statement followed a resolution by the International Atomic Energy Agency accusing Iran of “noncompliance” with its nuclear non-proliferation commitments and referring the issue to the UN Security Council. Iran’s UN envoy, Gholamhossein Darzi, described the accusations as “political and not technical in nature.”
Preliminary ship-tracking data showed seven vessels transited the Strait of Hormuz on Thursday, compared with 11 a day earlier and a 10-day average of 15, according to Reuters.
Analysts at ING said oil’s performance “reflects a market now repricing both the duration and severity of the conflict, along with a clearer recognition of the mounting threat to regional supply.” They also cited risks to Saudi energy infrastructure and Red Sea crude exports as Houthi forces target Saudi Arabia following their seizure of the Yemeni port of Mokha.
Brent crude declined 2.12% to $105.35 a barrel, while WTI fell 1.76% to $100.69. Gold futures were down 0.38% at $4,390.25, while spot gold rose 0.76% to $4,349.24.
UK Round-Up
Berkeley Group (LSE:BKG) said buyer caution and UK political uncertainty were affecting housing demand while calling for changes to stamp duty and planning regulations. The housebuilder has maintained its target of £1.4 billion in pre-tax profit over four years.
Trainline (LSE:TRN) reported first-half net ticket sales of £3.3 billion and underlying revenue of £233 million. The company reaffirmed its FY2027 guidance and announced a new £100 million share buyback programme.
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