London equities traded slightly higher on Monday despite renewed geopolitical tensions in the Middle East, with gains among energy stocks helping offset broader investor caution after fresh U.S. military action against Iran.
The FTSE 100 rose 0.07%, while Germany’s DAX fell 0.16% and France’s CAC 40 slipped 0.20%. Sterling also weakened against the U.S. dollar, with GBP/USD down 0.16% at 1.3386 by 03:25 ET (07:25 GMT).
Oil Prices Jump After Fresh U.S. Strikes
Crude prices climbed sharply after the U.S. launched another series of strikes against Iranian targets on Sunday.
U.S. Central Command said the operation was designed to further reduce Iran’s ability to threaten commercial shipping passing through the Strait of Hormuz, a vital route for global energy supplies.
Speaking to NBC’s Meet the Press, U.S. President Donald Trump said the waterway remained operational.
“It’s open,” he said, adding, “We bombed the hell out of them last night.”
His comments contrasted with those from Iran’s Persian Gulf Strait Authority (PGSA), which said the strait remained closed while a security review was carried out and that shipping would only resume once “stability and calm are restored.”
The latest military action followed strikes on Saturday, when CENTCOM said approximately 140 Iranian military targets were hit, bringing the total to more than 300 targets over three consecutive nights after Iranian forces allegedly attacked the Cyprus-flagged container vessel M/V GFS Galaxy.
Iranian Foreign Minister Abbas Araghchi wrote on X on 11 July: “Iran has so far kept its word, unlike the so-called U.S. Treasury Secretary who is violating Para 9 of the MoU,” adding, “that violation follows other violations and missteps by the United States” and that “there can only be mutual compliance.”
Meanwhile, CBS News reported that Iranian officials had privately told advisers to President Trump that the attack on commercial shipping had been carried out by a rogue faction and was not intended to derail negotiations. According to the report, discussions involving Vice President JD Vance, Jared Kushner and Steve Witkoff continued in Oman over the weekend.
Energy Markets React
Brent crude climbed 3.8% to $78.86 a barrel, while U.S. West Texas Intermediate crude gained 3.7% to $74.06 as traders priced in the possibility of supply disruptions in the Gulf.
Gold moved lower despite the geopolitical uncertainty, with gold futures falling 1.2% to $4,065.02 an ounce and spot gold declining 1.6% to $4,056.82.