Investing.com — British stocks turned positive in afternoon trade after opening lower on Friday, as Middle East war tensions kept oil prices above $100 a barrel and unexpectedly weak UK GDP data showed the economy stalled in January, while the pound remained below $1.33.
As of 12:09 GMT, the blue-chip index rose 0.2% and the fell 0.7% against the dollar to 1.3253. in Germany gained 0.04%, the in France was flat at 0.01%.
Iran latest update
Iran’s Supreme Leader Mojtaba Khamenei said Friday that the Strait of Hormuz will remain closed, with Iran effectively blocking maritime traffic to use the blockade as leverage against Western nations.
In a separate development, the United States relaxed sanctions on Russian oil in an effort to ease pressure on energy prices.
UK round up
The UK economy showed no growth in January, missing forecasts and raising concerns about its resilience ahead of energy price increases linked to Middle East tensions.
The Office for National Statistics reported gross domestic product remained flat at 0.0% month-on-month in January, below the consensus forecast of 0.2% growth. The data was released Friday before energy prices surged due to the Middle East conflict.
British government bond prices fell Friday, with the 10-year gilt yield reaching 4.817%, its highest level since September. Five-year and 10-year gilt yields rose by around 3 to 4 basis points shortly after the market opened.
London homebuilder Berkeley Group Holdings (LON:BKG) reaffirmed its annual profit guidance Friday but warned that geopolitical tensions and macroeconomic uncertainty are weighing on buyer confidence in the UK housing market. The company said it still expects pre-tax profit of about £450 million for the current financial year and a similar level for fiscal 2027, while targeting a net cash position of around £300 million by year-end.
Shares of radiator manufacturer and distributor Stelrad Group (LON:SRAD) fell after posting annual revenue of £279.6 million, a 3.8% decline from the previous year due to continued economic uncertainty in core territories of UK, Ireland and Europe. “Market demand remains subdued and we expect this to continue for at least first half of 2026,” Stelrad said.
Property investment firm CLS Holdings (LON:CLSH) saw shares dropped, making it the biggest loser on the FTSE small-caps index. The company said economic conditions remained subdued across Europe and that it was too early to assess the short- or long-term impact of the Middle East war on Europe’s economies and property markets. Its 2025 net rental income decreased by about 11% to £101.3 million.