The FTSE 100 edged higher on Thursday as investors awaited the European Central Bank’s interest-rate decision while monitoring developments in the U.S.-Iran conflict and oil markets.
The FTSE 100 was up 0.06% at 03:18 ET (07:18 GMT). Elsewhere in Europe, Germany’s DAX gained 0.12% and France’s CAC 40 rose 0.30%.
Sterling traded at $1.3554 against the U.S. dollar, up 0.07% on the day.
Markets were awaiting the ECB’s policy announcement, with a 25-basis-point increase across all three benchmark interest rates priced in as near-certain.
Strait of Hormuz Traffic Remains Below Recent Average
Iranian state media reported that projectiles struck several locations along Iran’s southern coastline in Sirik early Thursday, with explosions also reported across Minab County and Qeshm Island.
Vessel transits through the Strait of Hormuz declined to seven on Wednesday from 12 a day earlier, according to preliminary ship-tracking data cited by Reuters. The figure was below the 10-day average of 14 vessels.
Some ships were operating with their transponders switched off, meaning the data may not capture all vessel movements.
CBS News reported that multiple U.S. military aircraft were damaged by Iranian ballistic missile strikes on the Al Azraq airbase in Jordan early Wednesday, citing sources with direct knowledge of the matter.
According to the report, around eight F-15 aircraft sustained light damage and subsequently returned to service, while an A-10 Thunderbolt lost a wing. U.S. forces fired more than 30 Patriot missiles in response, CBS News reported.
Iran’s Islamic Revolutionary Guard Corps said the attacks were retaliation for U.S. strikes on five Iranian oil tankers on Tuesday.
Speaking at the Republican midterm convention in Dallas on Wednesday, U.S. President Donald Trump said Washington was “winning” the conflict and predicted that oil prices would decline after the war ended following November’s elections. He also left open the possibility of negotiations.
ING analysts said current signals “point to further escalation, keeping upside pressure firmly in place,” adding that significant disruption to Strait of Hormuz flows could tighten the oil market “more sharply” than developments in recent weeks had indicated.
ING also cited increased Chinese activity in the physical oil market, particularly in the North Sea, while noting that Chinese crude imports remain below year-earlier levels. The analysts said Beijing’s purchasing behaviour would be “crucial to the outlook.”
Brent Crude Trades Above $100 a Barrel
Brent crude futures for November delivery declined 0.37% to $100.89 a barrel, while October U.S. West Texas Intermediate futures fell 0.23% to $95.83.
December gold futures were down 0.08% at $4,456.97 an ounce, while spot gold gained 0.26% to $4,413.22.
In UK foreign policy developments, Foreign Secretary Ed Miliband described Israel’s decision to close London’s consulate in Jerusalem as “regrettable and damaging.”
UN special rapporteur Francesca Albanese described a UK-led ban on imports from illegal Israeli settlements as “potentially seismic,” while saying it should also cover East Jerusalem and Gaza.
UK Corporate Updates
Associated British Foods (LSE:ABF) said Primark plans to introduce home delivery in the UK, while like-for-like sales are expected to decline 3% in the fourth quarter to 12 September.
Currys (LSE:CURY) reported 7% like-for-like sales growth in the first quarter, citing demand for cooling products during the summer heatwave and growth in its Nordic operations.
THG (LSE:THG) reported that first-half adjusted EBITDA more than doubled to £42.8 million. The company said EU parcel duties are expected to limit third-quarter revenue growth to approximately 2%.
