Kalkine: FTSE 100 Dips as Israel-Iran Conflict Boosts Oil, Hits Travel Sector

3 min read | June 13, 2025 12:48 AM PDT | By Team Kalkine Media

Google News:

Kalkine: FTSE 100 Dips as Israel-Iran Conflict Boosts Oil, Hits Travel Sector — Image source: shutterstock

Recent News

Toro Raises Sales Outlook After Strong Q2—Russell 1000 Index?

Will Birkenstock Buyback Lift Russell 1000 Consumer Stocks?

Is CubeSmart gaining on Russell 1000 Index market attention?

S&P 500: Is Prudential Financial balancing growth and Japan risks?

Make Kalkine Media
My Trusted Source

Highlights

FTSE 100 opens lower amid Middle East tensions

Energy stocks gain on oil price surge, travel and leisure decline

Defence and gold sectors see upward movement

The FTSE 100 began the day with losses following renewed geopolitical tensions in the Middle East, triggered by Israeli air strikes on Iranian nuclear and military locations. The wider FTSE market reacted sharply, with safe-haven sectors benefiting while travel and leisure saw downward pressure.

Oil Surge Supports Energy Stocks

Oil prices spiked after reports of the air strikes, with Brent crude moving significantly higher. This surge boosted several energy-related equities within the FTSE 100. Shares of Shell PLC (LON:SHEL) and BP PLC (LON:BP.) rose in early trade. Both companies saw strong as the market responded to concerns over supply disruptions from one of the largest producers in the OPEC group.

Shell and BP feature regularly on the FTSE Dividend Yield Scan, making them focal points during periods of oil volatility.

Defence and Gold Move Higher

Increased geopolitical uncertainty lifted the defence and precious metals sectors. BAE Systems PLC (LON:BA) recorded gains amid expectations of rising global defence spending. Gold also experienced upward momentum as investors leaned into traditional safe havens. As a result, Endeavour Mining PLC (LON:EDV) advanced, tracking the broader rise in gold prices.

The upward shift in gold also provided support to other miners in the FTSE 350 segment.

Travel and Leisure Stocks Decline

Travel and leisure equities experienced a sharp downturn. International Consolidated Airlines Group SA (LON:IAG), the parent company of British Airways, recorded notable losses. The sector’s performance was also weighed down by easyJet PLC (LON:EZJ) and Intercontinental Hotels Group PLC (LON:IHG), both of which fell in early trade. Rising oil prices and concerns over regional airspace disruptions contributed to the decline in sentiment.

These developments affected sentiment across the broader FTSE 100, as investors reassessed exposure to sectors sensitive to geopolitical instability and energy cost fluctuations.

Global Markets React to Rising Tensions

The cautious tone extended globally, with major US indices including the Dow Jones, S&P 500, and Nasdaq all indicating lower openings. Asian markets reflected a similar pattern, with benchmarks in Japan, Hong Kong, and China registering declines.

Within the UK, the drop in the FTSE 100 follows a recent record high, showing the fragility of market confidence in light of escalating international events.

Short-term volatility across key asset classes is being closely monitored as market participants react to ongoing headlines from the region and shifts in commodity pricing dynamics.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.