FTSE 100 Gains Amid Middle East Tensions as Oil Prices and European Markets Advance

June 16, 2025 09:32 AM BST | By Team Kalkine Media
 FTSE 100 Gains Amid Middle East Tensions as Oil Prices and European Markets Advance
Image source: Shutterstock

Highlights

  • Israel-Iran conflict enters fourth day, raising oil market concerns globally

  • Brent crude rises as European equities maintain cautious upward trend

  • FTSE 100 led by key names including Entain and Standard Chartered

The FTSE 100 posted modest gains in early trading as global markets responded to the ongoing escalation between Israel and Iran. The index reflected broader sentiment across the FTSE and other major European benchmarks, even as military tensions intensified in the Middle East. With oil prices tracking higher, energy and defense-linked sectors remain key areas of focus.

Amid this volatile backdrop, certain London-listed names led the index’s performance, particularly in the financial and gaming sectors.

Oil Prices React to Conflict Developments

The fourth consecutive day of strikes between Israel and Iran contributed to movement in global oil benchmarks. Brent crude and West Texas Intermediate showed an upward trend in early trade. Statements from both governments indicate the likelihood of sustained confrontation, which has created concern around the stability of oil supply channels from the region.

The International Energy Agency reiterated its readiness to intervene in the event of severe disruptions, including releasing oil reserves. These developments continue to influence commodity markets and investor sentiment across energy-focused equities.

FTSE 100 Movers Include Gambling and Financial Majors

Companies listed on the FTSE 100 such as Entain plc (LON:ENT) and Standard Chartered plc (LON:STAN) were among the index leaders during early trade. This performance came despite wider geopolitical concerns, suggesting select sector resilience amid uncertainty.

Other constituents of the broader FTSE 350 also showed mixed sentiment, influenced by both commodity movements and global macroeconomic headlines.

European Markets Maintain Positive Momentum

Germany’s DAX and France’s CAC 40 indices posted early gains, mirroring broader optimism across European exchanges. The pan-European STOXX 600 index also reflected the cautious rally. Regional stability and the absence of immediate economic policy disruptions contributed to modest risk appetite.

While the market remains alert to unfolding events in the Middle East, broader economic indicators and sector-specific earnings continue to guide trading patterns.

Heightened Geopolitical Risks Dominate Investor Focus

As the death toll rises and military operations continue, the market’s response remains measured but wary. The prospect of a prolonged campaign in the oil-rich region has triggered volatility across global assets, from equities to energy commodities. Statements from Israeli and Iranian officials underline an uncompromising tone, leaving room for further escalation.


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