London stocks were expected to open slightly lower on Thursday as oil prices climbed back above $100 a barrel and tensions in the Middle East continued to dominate market sentiment.
Futures data from IG indicated the FTSE 100 would open about 8.9 points lower, or 0.1%, at 10,344.67. The benchmark closed down 0.6% at 10,353.77 on Wednesday.
Energy markets moved sharply higher after reports of further explosions involving foreign vessels in the Gulf. Brent crude rose to $100.58 a barrel early Thursday, up from $91.93 late Wednesday.
The increase came despite coordinated efforts by major economies to stabilise markets. The International Energy Agency said member countries including the UK and US would release 400 million barrels from strategic reserves — roughly equivalent to four days of global oil consumption.
Separately, the United States Department of Energy confirmed it will release 172 million barrels from the Strategic Petroleum Reserve starting next week, with the drawdown expected to take around 120 days.
Donald Trump said the US would ensure “great safety” for oil tankers travelling through the Strait of Hormuz, even as Iran warned crude prices could surge to $200 a barrel if attacks on shipping continue.
Currency markets were softer. Sterling traded at $1.3378 early Thursday, down from $1.3410 at the London close on Wednesday. The euro slipped to $1.1550, while the dollar strengthened slightly against the yen to ¥158.96.
Asian equities were broadly weaker. Japan’s Nikkei 225 fell 1.3%, China’s Shanghai Composite declined 0.2%, and Hong Kong’s Hang Seng Index dropped 0.9%. Australia’s S&P/ASX 200 closed down 1.3% as rising inflation expectations weighed on sentiment.
On Wall Street, markets ended mixed on Wednesday. The Dow Jones Industrial Average fell 0.6%, the S&P 500 slipped 0.1%, while the Nasdaq Composite edged 0.1% higher.
