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Oil prices declined during Asian trading on Monday as easing geopolitical tensions between Israel and Iran prompted traders to reduce the risk premium. Additionally, expectations of further output increases by OPEC+ put downward pressure on crude.

Brent crude for August delivery fell 0.8% to $67.20 per barrel, while West Texas Intermediate (WTI) crude dropped 1.1% to $64.77 per barrel by 21:44 ET (01:44 GMT). Despite the recent dip, oil prices are still set to rise over 5% this month, driven initially by the conflict between Israel and Iran.

Mixed signals came from China’s latest manufacturing data, with the Purchasing Managers’ Index showing contraction in June, providing only moderate support for oil demand.

Ceasefire Holds, Middle East Supply Risks Ease

Crude prices retreated after sharp gains last week, as the ceasefire between Israel and Iran appeared stable, reducing fears of prolonged supply disruptions in the Middle East. The 12-day conflict had pushed oil close to annual highs, especially following Israeli and U.S. strikes on Iranian nuclear facilities.

The U.S. brokered the ceasefire, and President Donald Trump indicated upcoming nuclear negotiations with Iran, further easing tensions. The ceasefire also quelled concerns over potential Iranian blockades of the Strait of Hormuz, a critical oil shipping route.

OPEC+ Output Increase Expected Ahead of July Meeting

Market attention now turns to OPEC+’s scheduled meeting on July 6, where the group is widely expected to approve a production increase of approximately 411,000 barrels per day for August—consistent with recent monthly hikes.

Earlier this year, OPEC+ began reversing two years of production cuts to counter persistently low prices and discipline members exceeding quotas.

Outside OPEC+, traders are also watching U.S. fuel demand as summer travel season ramps up.

The British pound maintained its position above $1.37 on Monday, following a breakthrough last week, as official data confirmed robust growth in the UK economy during the first quarter of 2025.

At 07:53 GMT, the FTSE 100 index slipped 0.1%, while the pound edged down slightly by 0.07% against the dollar but remained above the $1.37 mark. Meanwhile, Germany’s DAX index gained 0.2%, and France’s CAC 40 fell marginally by 0.05%.

UK Economy Shows Resilience in Q1

Final GDP figures released Monday by the Office for National Statistics revealed that the UK economy expanded by 0.7% quarter-on-quarter in Q1 2025, representing a 1.3% increase year-on-year. Despite the positive momentum, some challenges remain on the horizon.

US-UK Trade Deal Comes Into Effect

The UK government confirmed the activation of a new trade agreement with the United States, aimed at reducing tariffs on British imports. Signed by US President Donald Trump and UK Prime Minister Keir Starmer, this deal signifies a major milestone in transatlantic trade relations.

Regulatory Update: Simplifying Investment Rules

Britain’s financial regulator announced plans to streamline rules for investment firms offering pension and investment services, a move welcomed by the industry that had criticized existing regulations for being overly stringent.

Wood Group Faces Regulatory Probe

In other corporate news, oilfield services company Wood Group disclosed on Friday that it is under investigation by the UK financial watchdog. This follows last year’s announcement of an independent accounting review concerning specific contracts and charges.

Chemring Group (LSE:CHEM) shares rose 1.6% after announcing the acquisition of Landguard Nexus Limited for up to £20 million, enhancing its electronic warfare (EW) capabilities. The deal involves an upfront payment of £14 million in cash, with a potential additional £6 million in earn-outs tied to performance milestones. The acquisition was completed via Chemring’s Roke subsidiary and is expected to strengthen its Cyber and Electromagnetic Activities (CEMA) product portfolio.

Landguard Nexus specializes in the design, manufacture, and support of software-defined radio (SDR) systems, including tracking technologies across satellite, cellular, and radio frequency communications. The current owner-managers are anticipated to stay on with Chemring post-acquisition.

Jefferies analysts described the acquisition as “strategically sensible,” noting that Landguard is part of Chemring’s existing EW supply chain and offers its own market growth opportunities.

This acquisition marks a key strategic step for Chemring to consolidate its supply base, expand technological capabilities, and reinforce its position in the electronic warfare sector.

MS International PLC (LSE:MSI) has delivered record financial results for the year ending April 2025, with pre-tax profits rising to £20.05 million and revenues reaching £117.50 million. The company is increasingly focusing on its Defense and Security division, which now represents 70% of total turnover, driven by rising global defense expenditure. Although international uncertainties and government reviews have impacted some order placements, MS International remains optimistic about its medium- and long-term growth prospects.

The company considered selling some of its non-core divisions but deemed the offers unattractive and decided to continue developing these businesses. A final dividend of 18p per share has been proposed, signaling confidence in the company’s future.

MS International’s strong financial performance is underpinned by robust revenue growth, solid cash flow, and low leverage. While technical indicators show some momentum, the stock appears undervalued, highlighting potential investment appeal. The outlook remains positive, supported by the company’s financial strength and strategic direction, despite mixed technical signals.

About MS International

MS International PLC operates primarily in the defense and security sectors, producing naval weapon systems and land-based counter-drone technology. It also has divisions involved in forgings, petrol station superstructures, and corporate branding, serving markets across the UK, US, and Eastern Europe.

Serica Energy (LSE:SQZ) has confirmed that production has resumed at the Triton FPSO following the completion of planned maintenance and repair work. The company anticipates that production levels will ramp up and stabilize by July, supported by the potential output from two newly drilled wells. The recent maintenance involved essential upgrades and repairs designed to boost the FPSO’s operational efficiency, with no additional downtime expected for the remainder of 2025.

Despite some challenges in financial performance, Serica Energy’s outlook remains positive, underpinned by favorable corporate developments and attractive valuation metrics. While technical indicators reveal strong momentum, investors should remain cautious due to signals of an overbought market.

About Serica Energy

Serica Energy is a UK-based independent oil and gas company focused on exploration and production in the UK Continental Shelf. The company manages a balanced portfolio of oil and gas assets, contributing roughly 5% of the UK’s natural gas supply. Serica’s key operations include the Bruce, Keith, and Rhum fields in the Northern North Sea, with additional interests linked to the Triton FPSO.

AdvancedAdvT Limited (LSE:ADVT) has announced impressive financial results for the year ending 28 February 2025, with revenues reaching £43.3 million and adjusted EBITDA exceeding expectations at £11.3 million. The company’s growth was fueled by strategic acquisitions of Celaton Limited, HFX Limited, and GOSS Technology Limited, which strengthened its SaaS and cloud service portfolio.

Driven by operational enhancements and a revamped go-to-market strategy, AdvancedAdvT achieved a 17.8% pro forma revenue increase alongside a 90% rise in adjusted EBITDA. With a strong cash position, the company is well-equipped to pursue continued expansion through organic growth and further acquisitions, targeting opportunities in AI, automation, and digital transformation sectors.

About AdvancedAdvT Limited

AdvancedAdvT Limited is a global provider of software solutions focused on business operations, compliance, and human capital management. The company leverages AI, data analytics, and business intelligence to facilitate digital transformation and support growth across its target markets.

TT Electronics (LSE:TTG) has announced a 5.5% drop in group revenue for the first five months of 2025. While the company saw strong sales growth in Europe, these gains were offset by difficulties in its Asian and North American markets. As part of a strategic review, TT Electronics is moving forward with restructuring its Components division, including the closure of its Plano, Texas facility, which has faced ongoing losses.

The Aerospace and Defence segment remains solid, and the company anticipates that its adjusted operating profit will meet prior forecasts, despite the expectation that leverage may exceed 2x by June 2025. TT Electronics is concentrating on operational efficiencies and improvements to enhance shareholder returns.

Although the stock benefits from positive technical trends and recent corporate initiatives, ongoing financial pressures and valuation concerns temper the overall outlook. The company’s future performance will depend heavily on managing these challenges while capitalizing on its market strengths.

About TT Electronics

TT Electronics is a global specialist in engineered electronics, serving industries driven by long-term structural growth. Its product portfolio includes sensors, power management solutions, and connectivity devices, catering to sectors such as industrial, medical, aerospace, and defense. The company operates design and manufacturing sites across the UK, North America, and Asia.

Cel AI PLC (LSE:CLAI) has completed a conditional fundraising round, securing £10 million through a combination of placing and direct subscriptions. The company issued 5 billion new ordinary shares at a price of 0.2p each. Funds raised will be used primarily to acquire Bitcoin and to support ongoing operational activities, reflecting Cel AI’s strategic focus on combining AI advancements with a Bitcoin treasury model to enhance capital efficiency and long-term growth potential.

While the company faces ongoing challenges with profitability and cash flow, technical indicators suggest some positive momentum. However, volatility and valuation concerns continue to affect the stock’s attractiveness. The recent funding and leadership changes may provide a pathway for strategic improvement and potential future upside.

Chariot Limited (LSE:CHAR) has published its final results for 2024, showcasing important progress across its energy ventures in Africa. The company revealed plans to divide into two separate entities focused on Upstream Oil and Gas and Renewable Power, aiming to enhance shareholder value and unlock new growth opportunities.

Highlights from 2024 include successful drilling operations in Morocco, forging strategic alliances for renewable energy projects, and securing significant funding to support electricity trading activities. These developments set the stage for Chariot to capitalize on rising demand for sustainable energy solutions across the African continent.

About Chariot Limited

Chariot Limited is an Africa-centric energy company operating two core divisions: Upstream Oil and Gas and Renewable Power. The company’s upstream segment concentrates on exploring and developing oil and gas resources, primarily in Morocco. Meanwhile, its Renewable Power arm focuses on delivering cost-effective and reliable green energy solutions through generation and trading initiatives in South Africa, along with power-to-mining and water projects elsewhere on the continent. Notably, Chariot is advancing its green hydrogen project, Project Nour, in Mauritania, and piloting a 1 MW electrolyser in Morocco.

Polar Capital Holdings (LSE:POLR) has announced a planned leadership change as current CEO Gavin Rochussen prepares to step down after an eight-year tenure. Iain Evans, who currently serves as Global Head of Distribution, has been named CEO Designate and is set to take over the role in September, pending regulatory clearance.

During Rochussen’s leadership, Polar Capital experienced robust expansion, with assets under management surging by 130% and earnings per share climbing 162%. The company aims to maintain this momentum under Evans, focusing on sustaining growth and reinforcing its reputation as a resilient and distinctive asset manager.

Despite a solid financial base characterized by strong profitability and a healthy balance sheet, recent setbacks in revenue and cash flow growth, combined with weak technical signals, indicate potential near-term hurdles. However, the stock’s attractive dividend yield and undervaluation may offer some appeal to investors balancing risk and reward.

About Polar Capital Holdings

Polar Capital Holdings is a specialist active asset manager, recognized for its broad portfolio of differentiated investment strategies. The firm prioritizes delivering value to clients and shareholders while expanding its global distribution network to support long-term growth and diversification.