Investing.com — British stocks edged higher on Thursday as investors positioned ahead of a widely anticipated European Central Bank rate decision, with elevated oil prices and U.S.-Iran tensions in the Persian Gulf providing a cautious backdrop.
The rose 0.06%, as of 03:18 ET (07:18 GMT), while Germany’s edged 0.12% higher and France’s gained 0.30%. Sterling traded at $1.3554, up 0.07% on the day.
Projectiles struck several areas along Iran’s southern coastline in Sirik early Thursday, with multiple explosions reported across Minab County and Qeshm Island, Iranian state media said.
Vessel transits through the Strait of Hormuz fell to seven on Wednesday from 12 the day before, well below the 10-day average of 14, according to preliminary ship-tracking data cited by Reuters; some vessels were navigating with transponders switched off, suggesting the count may understate actual traffic.
Multiple U.S. military aircraft were damaged in Iranian ballistic missile strikes on the Al Azraq airbase in Jordan early Wednesday, CBS News reported, citing sources with direct knowledge of the matter, saying roughly eight F-15s sustained light damage and were returned to service while an A-10 Thunderbolt lost a wing; US forces fired more than 30 Patriot missiles in response.
Iran’s Islamic Revolutionary Guard Corps said the strikes were retaliation for the US hitting five Iranian oil tankers on Tuesday.
Speaking at the Republican midterm convention in Dallas on Wednesday, U.S. President Donald Trump said Washington was “winning” the conflict and predicted oil prices would fall once the war ended after November’s elections, while leaving the door open to negotiations.
ING analysts said current signals “point to further escalation, keeping upside pressure firmly in place,” warning that any meaningful disruption to Hormuz flows could tighten the market “more sharply” than recent weeks have implied.
The broker also flagged rising Chinese buying activity in the physical oil market, particularly in the North Sea, as an additional bullish factor, though it noted Chinese crude imports remain well below year-ago levels and that Beijing’s buying behaviour would be “crucial to the outlook.”
Investors also awaited the ECB’s rate decision, with a 25-basis-point hike across all three benchmark rates priced in as near-certain.
British Foreign Secretary Ed Miliband condemned Israel’s decision to close London’s consulate in Jerusalem as “regrettable and damaging.”
A UK-led ban on illegal Israeli settlement imports drew qualified praise from UN special rapporteur Francesca Albanese, who called the policy shift “potentially seismic” but said it should extend beyond the West Bank to include East Jerusalem and Gaza.
for November delivery eased 0.37% to $100.89 a barrel, while for October slipped 0.23% to $95.83.
for December delivery fell 0.08% to $4,456.97 an ounce, while gained 0.26% to $4,413.22.
UK round up
said Primark will introduce UK home delivery as like-for-like sales are expected to fall 3% in Q4 to Sept. 12.
reported 7% Q1 like-for-like sales growth, driven by strong demand for cooling products during the summer heatwave and growth in the Nordics.
reported H1 adjusted EBITDA more than doubled to £42.8 million, but warned EU parcel duties would slow Q3 revenue growth to around 2%.