FTSE 100 Rises as BP and Shell on Oil Surge After US-Iran Tensions

Highlights

• ftse 100 firms, lifted by energy and industrial gains amid geopolitical developments

• Shell LON:SHEL and BP LON:BP advance as oil prices climb following military action

• Spectris LON:SXS sees sharp upward move amid competing acquisition interest

The ftse 100 opened the session with minor declines but quickly reversed course as several blue-chip firms posted early gains. The index was lifted by rising oil prices and sector-specific developments, particularly in industrial and healthcare names. Gains in energy and consumer services balanced out broader concerns tied to geopolitical activity in the Middle East, after recent reports of US military actions targeting Iranian nuclear sites.

Shares of BP (LON:BP) and Shell (LON:SHEL) moved higher as oil benchmarks rose, following heightened tensions in the Persian Gulf. The market reaction indicates sensitivity to potential supply disruptions in global oil flows. Shell saw a series of incremental gains throughout the morning session, while BP’s movement remained firmly upward.

Oil and Energy Sector Buoyed by Supply Concerns
Following the escalation in US-Iran conflict, oil prices posted a noticeable uptick. This development provided a strong boost to oil majors such as Shell LON:SHEL and BP LON:BP, which are core constituents of the ftse 100. The gains came as traders responded to possible threats to global energy infrastructure and production networks. The upward movement in oil prices supported not only these firms' share performance but also broader market sentiment in the energy sector.

Mergers and Acquisitions Drive Spectris Stock Surge
Industrial technology firm Spectris LON:SXS experienced one of the most significant gains on the ftse 350, following confirmation of an acquisition agreement with Advent. Adding further complexity to the situation, KKR, another US-based private equity firm, disclosed its continued interest and ongoing due diligence regarding a competing offer. The resulting bid activity significantly lifted trading volume and pushed the share price higher, positioning the firm among the top risers in the morning session.

Healthcare and Distribution Names Advance
ConvaTec Group (LON:CTEC), a medical devices manufacturer, also showed notable movement, trading positively in early activity. The healthcare firm’s performance contributed to overall sector strength within the ftse 100, reinforcing broader market resilience. The group’s inclusion in the FTSE Dividend Yield screen added to investor interest during a time of market uncertainty.

Elsewhere, Bunzl (LON:BNZL), a distribution and outsourcing services provider, moved higher in line with gains across logistics-related sectors. Compass Group (LON:CPG) also advanced, supported by stable demand in the catering segment and broader recovery signals across service industries.

Airlines and Real Estate Among the Decliners
While gains were evident across energy, healthcare, and industrials, travel-related firms struggled. International Consolidated Airlines Group (LON:ICAG) and EasyJet (LON:EZJ) traded lower, reflecting sensitivity to geopolitical volatility and its implications for flight operations and fuel costs.

Property and real estate names such as Primary Health Properties (LON:PHP) saw downward pressure as concerns around valuation and sector-specific headwinds weighed on sentiment. Despite being part of the broader ftse landscape, the group remained underperformers in today’s session.

Broader European Markets Remain Cautious
The German DAX and France’s CAC hovered near flat territory, showing a muted reaction compared to the UK markets. Gains in select UK sectors helped lift the ftse 100 despite an overall cautious tone globally. Spain’s IBEX managed modest upward movement, driven by local stock-specific catalysts.

Medical, Industrial and Energy Sectors Lead Morning Advances
Halma (LON:HLMA), Intercontinental Hotels Group (LON:IHG), and WPP (LON:WPP) added modest gains to the ftse 100, contributing to market stability. The index found firm ground in a mix of healthcare, industrials, and communications services. Berkeley Group (LON:BKGH) also rose in early trade, pushing the housing segment upward within the ftse 350.