London’s FTSE 100 advanced 0.1% to 10,886 points on Wednesday, extending Tuesday’s 0.3% gain, as a sharp retreat in global oil prices pressured heavyweight energy producers.
Brent crude futures fell toward $86 a barrel, down roughly 2% on the day, after reports that Iran and Oman resumed bilateral talks aimed at reopening the Strait of Hormuz. The easing of immediate supply concerns prompted profit-taking in crude-linked equities. Shell and BP each declined more than 1.5%, weighing on the index.
The decline in energy shares contrasted with gains in homebuilders and industrial miners. The UK government’s £10 billion social housing initiative, unveiled to accelerate low-cost construction nationwide, lent support to domestic equities earlier this week. Broader sentiment was further buoyed by a rally in industrial metals, with copper prices surging to a six-month high amid dwindling inventories on the London Metal Exchange. Rio Tinto and Anglo American, among the index’s largest miners, advanced on the move.
Gold prices eased slightly ahead of Thursday’s U.S. inflation data, trading modestly lower after a recent rally. The mixed performance across commodities reflected shifting expectations around global supply risks and monetary policy direction.
