Author: Fiona Craig

Oil prices remained close to six-week highs on Monday as renewed attacks involving the United States and Iran kept traders focused on crude shipments through the Strait of Hormuz and other Middle Eastern waterways.

Brent crude futures slipped 9 cents, or 0.1%, to $96.19 a barrel at 0822 GMT. The contract had earlier reached $97.93, its highest level since July 24.

U.S. West Texas Intermediate crude declined 45 cents to $91.03 a barrel, remaining close to its recent six-week high.

The moves followed gains of around 8% for Brent and nearly 10% for WTI last week after attacks between the U.S. and Iran resumed.

Hormuz vessel traffic falls to lowest since May

U.S. Central Command said American forces struck three Iranian oil tankers on Saturday, including one off the coast of Kharg Island near Iran’s main oil export hub.

Iran’s Islamic Revolutionary Guard Corps navy said it targeted three oil tankers travelling through unauthorised routes in the Strait of Hormuz. It also said it targeted three additional U.S. vessels in other locations.

Marisks, a maritime intelligence firm, called Saturday’s attacks a “major escalation.”

“Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping,” it added.

Data from analytics firm Kpler showed an average of 10 commodity vessels per day passed through the Strait of Hormuz during the past 10 days, the lowest level since May.

“If tanker traffic begins to slow materially, the market could price in a much larger supply shock. And there are already signs that this is happening,” said Priyanka Sachdeva, head of market insights at Phillip Nova.

Goldman Sachs said crude prices could reach as much as $120 a barrel if attacks on shipping increase.

Iran signals restricted zone as OPEC+ holds policy steady

Iran intends to announce a restricted zone outside the Strait of Hormuz in the coming days, according to Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, as cited by state media.

The planned zone comes as markets continue to assess the implications of reduced vessel traffic and military activity for Middle Eastern crude flows.

OPEC+ separately maintained its existing oil output policy for October at a meeting on Sunday.

The producer group said it needs to reach an agreement on new quotas before deciding on subsequent changes to production policy.

The Eurozone economy expanded by 0.6% in the second quarter compared with the previous three months on a seasonally adjusted basis, according to a new estimate released by Eurostat on Monday.

Compared with the same period a year earlier, gross domestic product in the 21-member currency area increased by 1.2%, data from the European Union’s statistics agency showed.

The figures come as the Eurozone economy faces higher energy prices linked to the Iran conflict, while investment in artificial intelligence has provided support to economic activity. Forecasters cited by Reuters have warned that growth this year could remain below the region’s already reduced potential.

In the first quarter, the Eurozone economy had recorded annualised growth of 0.6%.

Ireland records largest quarterly increase

Among individual member states, Ireland recorded the largest quarter-on-quarter expansion, with its economy growing by 10.2%.

Austria was the only member state to report a contraction, with gross domestic product declining by 0.1% from the previous quarter.

ECB interest-rate decision due this week

The data were released ahead of the European Central Bank’s latest monetary policy decision later this week.

Policymakers are widely expected to increase borrowing costs as the central bank assesses inflationary pressures associated with higher energy prices.

European and British wholesale natural gas prices rose around 2% on Monday, remaining close to their highest levels since late 2023 as markets assessed developments in the Persian Gulf and European gas storage levels ahead of winter.

The benchmark Dutch front-month gas contract gained 2% to trade near €73.80 per megawatt-hour, below the multi-year high of €74.32 reached last week.

In Britain, the equivalent NBP wholesale gas contract also rose 2% to around 182.50 pence per therm, compared with its 2023 high of 183.95 pence.

The price moves came as traders assessed the potential implications of developments affecting Middle Eastern energy shipping routes and the pace of European storage replenishment.

Iran plans restricted zone near Strait of Hormuz

Iranian authorities have announced plans to establish a restricted zone outside the Strait of Hormuz in the coming days. The announcement followed military activity over the weekend in which U.S. forces struck and disabled three Iranian oil tankers.

The U.S. said the strikes were carried out in response to an Islamic Revolutionary Guard Corps ballistic missile attack targeting two U.S. Navy warships in the region.

Approximately one-fifth of global liquefied natural gas traffic passes through the Strait of Hormuz, with Qatar a major source of those shipments. Restrictions affecting transit through the waterway could therefore affect LNG supplies available to international markets, including Europe.

European utilities are also competing with Asian buyers for uncommitted LNG cargoes from the Atlantic basin as they seek additional supplies.

European gas storage at about 62%

European gas storage facilities were approximately 62% full, according to data from Gas Infrastructure Europe, around 17 percentage points below the five-year seasonal average.

The source attributed slower storage injections during August to higher gas-fired electricity generation during periods of hot weather in Southern Europe, scheduled offshore pipeline maintenance in Norway and delays to Qatari LNG cargoes.

The storage position has increased the market’s focus on LNG availability during the autumn and winter, particularly if disruptions to seaborne supplies continue.

Energy prices add to focus on ECB meeting

Natural gas prices are also being monitored alongside Brent crude, which remained above $90 a barrel, as European markets assess the inflation outlook ahead of Thursday’s European Central Bank meeting.

Preliminary figures showed annual headline Eurozone inflation accelerated to 3.3% in August, with the energy component increasing 14.3%.

Money markets were pricing in a 25-basis-point interest-rate increase from the ECB at this week’s meeting.

SigmaRoc PLC (LSE:SRC) shares rose more than 12% on Monday after the European lime and minerals group reported an increase in first-half earnings and announced an agreement to acquire Akcinė Bendrovė “Dolomitas.”

The company reported adjusted pretax profit of £75.1 million for the first half of the year, compared with £67.4 million in the same period a year earlier.

Alongside its results, SigmaRoc said it has agreed to acquire Dolomitas from its existing shareholders for €110 million on a debt- and cash-free basis.

The transaction also includes an additional payment of €8 million for certain non-core assets.

European stocks edged lower on Monday as investors assessed developments in the Persian Gulf alongside expectations for an interest-rate increase from the European Central Bank later this week.

The pan-European STOXX 600 declined 0.1%, remaining near multi-week lows. Germany’s DAX and France’s CAC 40 traded in narrow ranges as markets weighed higher energy prices and the outlook for interest rates.

Iranian authorities have indicated plans to establish a restricted zone outside the Strait of Hormuz in the coming days. The announcement follows U.S. strikes that disabled three Iranian oil tankers over the weekend.

Washington said the strikes were carried out in response to an Islamic Revolutionary Guard Corps ballistic missile attack targeting two U.S. Navy warships in the region.

Oil prices rose a further 1% on Monday after gaining nearly 10% over the previous week, with Brent crude trading above $90 a barrel.

The Strait of Hormuz handles roughly 20% of global seaborne oil and gas flows, making developments affecting transit through the waterway relevant to European energy costs and industrial supply chains.

ECB rate decision approaches

European markets were also focused on Thursday’s European Central Bank monetary policy meeting, with money markets pricing in a 25-basis-point interest-rate increase.

Expectations for higher rates follow preliminary August data showing annual headline Eurozone inflation accelerating to 3.3%, with the energy component rising 14.3%.

European sovereign bond yields remained elevated ahead of the decision, with Germany’s 10-year Bund yield trading near multi-year highs.

Higher borrowing costs are also being assessed for their potential impact on rate-sensitive industries, including real estate and construction.

U.S. inflation data also in focus

Investors are awaiting U.S. Consumer Price Index data scheduled for later in the week as markets assess the outlook for the Federal Reserve’s September 15-16 policy meeting.

The inflation report follows Friday’s U.S. nonfarm payrolls data, which showed the economy added 162,000 jobs in August.

The CPI figures are expected to provide further information on inflation ahead of the Federal Reserve meeting and could affect market expectations for the path of U.S. interest rates.

Molten Ventures plc (LSE:GROW) said its Growth Fund has reached a £175 million first close, including a £75 million cornerstone commitment from the British Business Bank.

Molten has committed the remaining £100 million and plans to seek additional investors as it targets a final fund size of £350 million.

The Growth Fund will focus on Series B and later-stage investments in technology companies in the UK and Europe, providing Molten with additional third-party capital alongside its listed investment platform.

The venture capital firm said it has completed more than 40 growth-stage deals and invested over £700 million through this strategy during the past decade. The new fund will allow private institutional investors to participate through a private fund structure.

Molten said the fund will target businesses operating across sectors including space, artificial intelligence, fintech, quantum technology, deeptech and hardware. It is intended to increase the amount of capital available for Series B and later investment rounds and allow Molten to take larger ownership positions in selected portfolio companies.

The British Business Bank has previously invested in Molten’s listed platform and has been an investor since 2018. It has also co-invested alongside Molten in UK technology companies including SatVu, IMU Biosciences, Thought Machine and Paragraf.

Ben Wilkinson, Chief Executive Officer of Molten Ventures, commented:

“Securing the British Business Bank as cornerstone investor is a strong endorsement of Molten’s strategy and of the relationship we have built over many years. It also underlines the importance of bringing more long-term institutional capital into venture and growth, so that ambitious UK and European technology companies have the backing they need to scale.

“Molten has a strong track record in growth investing, with more than 40 growth-profile deals completed and over £700 million invested. The Growth Fund builds on that experience and gives us a dedicated vehicle to support more companies as they scale.

“There is no shortage of exceptional founders or technology businesses in the UK and Europe; what they too often lack is sufficient growth capital to help them become global leaders. This Fund gives Molten greater firepower to back our highest-conviction companies at Series B and beyond, build meaningful ownership positions and channel capital into the next generation of growth.

“Alongside our other strategies, including Molten Secondaries, the Growth Fund will strengthen our ability to connect long-term capital with companies that are shaping the future.”

Robert Greenwood, Senior Director, Funds at British Business Bank, said:

“To create deeper pools of late-stage capital for breakthrough technologies, we are helping UK tech investors to launch new growth funds. This commitment is the latest example of that strategy. Molten Ventures is one of the UK’s leading growth investors, with a strong track record of backing fast-growing technology businesses. This fund will help the next generation of tech entrepreneurs scale faster and build global companies from the UK.”

Molten Ventures invests in technology companies across the UK and Europe. Since 2016, the group has deployed more than £1 billion of capital and generated more than £800 million in proceeds from investments. It manages more than £2 billion of assets across the group.

Dianomi (LSE:DNM), the UK-based native digital advertising specialist, has returned to top-line growth after reporting a 2% year-on-year rise in first-half revenue to £13.40 million, up from £13.2 million in the same period last year. On a constant-currency basis, the increase was steeper at 4.5%.

Gross margin strengthened to 28.9% over the six months, feeding through to a higher gross profit and a narrower EBITDA loss

The improvement was underpinned by widened partnerships with CNN News and Associated Press, both of which started generating revenue from the second quarter of 2026.

Dianomi also signed up 67 new premium advertisers in the half, a 56% jump on the prior year. During the period the group rolled out Dianomi Interactive and put money behind AI-powered tools, extending the range of products it takes to market.

Momentum has carried into the second half, with the company reporting that revenue across July and August was 14% higher year-on-year.

Management cautioned that hesitant decision-making among advertisers, alongside structural shifts in the sector, will remain a headwind. Even so, Dianomi said it is well placed to capitalise on opportunities as the digital advertising landscape continues to change.