London’s FTSE 100 reversed early‑day losses on Monday, rising 0.27% to 10,831.09 by 09:25 ET. The gain came as Brent crude extended its rally, up 1.07% to $97.31 per barrel, and U.S. WTI crude rose 0.92% to $92.32. The energy boost helped UK energy stocks, with BP up 2.02% and Shell gaining 1.76%.
European peers also moved higher. Germany’s DAX slipped 0.28% to 26,006.53, while France’s CAC 40 turned positive, up 0.35%. The euro‑zone Euro Stoxx 50 added 0.17%. In the United States, the S&P 500 fell 0.38% and the Dow Jones slipped 0.51%, reflecting thinner volumes on the Labor Day holiday.
The commodity rally coincided with a sharp slowdown in vessel traffic through the Strait of Hormuz. Analytics firm Kpler recorded an average of just 10 ships per day on Monday, down from 13 the previous day and more than 15 on Friday. Reuters reported only two vessels transited on Saturday and six on Sunday, the lowest level since May.
Iran’s Supreme National Security Council head Mohsen Rezaei said Tehran would announce a maritime exclusion zone extending from the U.S. naval blockade line through Hormuz into the Persian Gulf. Iran’s foreign ministry added that talks with Oman on a temporary safe passage were in their final stage and would be registered with the International Maritime Organization in the coming days. Qatar warned that Gulf states could not rely solely on U.S. security guarantees.
Corporate headlines included Jaguar Land Rover’s plan to cut nearly 4,000 jobs – about 10% of its global workforce – through voluntary redundancies over two years, targeting £1.7 billion in savings and a lower break‑even volume of 300,000 vehicles. TotalEnergies moved its Papua LNG project closer to a final investment decision after trimming capital spending to roughly $14 billion and signing an amended gas agreement with Papua New Guinea, alongside a new LNG marketing joint venture with Kumul Petroleum.
Semiconductor supplier IQE posted a first‑half adjusted core profit of £6 million, driven by demand from AI infrastructure, data centres and defence customers. In the telecom sector, Waterland is reported to be preparing an offer that would exceed Epiris’s £1.08 billion bid for Gamma Communications, which had previously agreed to a 1,120 pence‑per‑share proposal. Standard Life announced better‑than‑expected first‑half profit, helped by new business growth and pension risk‑transfer demand.
UK housing data showed house prices fell 0.4% year‑on‑year in August, the first annual decline since November 2023, and 0.2% month‑on‑month, missing forecasts for a modest rise. Chancellor John Healey pledged a 25% cut in business regulation by the end of Parliament and unveiled a £150 million British Business Bank fund for northern scale‑ups.
Analysts highlighted upcoming catalysts: Jefferies noted the U.S. CPI release and the ECB’s September decision, while UBS economist Dean Turner warned that recent bond sell‑offs signal a shift from monetary policy concerns to fiscal sustainability. The odds of a Federal Reserve rate hike in September were estimated at 60% following a strong U.S. payrolls report.
