London stocks opened broadly unchanged on Friday as gains in energy giants Shell and BP helped offset pressure from the latest Wall Street technology sell-off, while oil prices remained near five-month highs amid escalating tensions in the Middle East.
The FTSE 100 was little changed at 10,727.92 in early trading, while the domestically focused FTSE 250 was similarly flat at 24,220.53.
Shell shares rose 0.8%, and BP gained 1.6%, benefiting from stronger crude prices as investors assessed the potential impact of further disruption to Middle Eastern oil supplies.
Brent crude climbed as much as 1.4% overnight to more than $114 a barrel, reaching its highest level in five months amid concerns that the United States and Israel could intensify military action against Iran.
The increase followed a New York Times report suggesting that Washington and Israel had developed plans for renewed strikes after the upcoming US midterm elections.
However, the reported plans remain unconfirmed, and the timing or scale of any potential military action is uncertain.
Oil prices have gained more than 4% this week, reflecting heightened concerns over the security of energy infrastructure and shipping routes in the Middle East.
The rally has supported major oil producers but increased pressure on businesses exposed to higher fuel, transport and manufacturing costs.
Meanwhile, Wall Street’s technology-heavy Nasdaq fell sharply on Thursday, as investors continued to question the sustainability of artificial intelligence valuations and the substantial expenditure required to develop AI infrastructure.
Despite the weakness in US technology shares, London’s relatively limited exposure to the sector has helped the FTSE 100 remain more resilient.
The contrasting performance of energy and technology stocks highlights a shift in market sentiment, with oil producers benefiting from higher commodity prices while AI-related companies face increasing scrutiny over investment returns.
However, persistently elevated oil prices could also fuel inflation and strengthen expectations that central banks will maintain higher interest rates.
For UK investors, the immediate focus remains on movements in Brent crude and developments in the Middle East, alongside the wider impact of technology sector volatility on global equity markets.
The FTSE 100’s steady opening suggests that gains in heavyweight energy companies are currently providing support, although continued geopolitical uncertainty and inflation concerns could influence trading throughout the session.
