FTSE 100 flat; oil rise lifts energy shares amid Mideast tensions

London’s FTSE 100 was little changed on Friday, edging up 0.04% to 10,576.97, while the mid-cap FTSE 250 slipped 0.4%. Gains in energy and utility shares offset falls in banking and consumer goods stocks.

Crude oil prices rose after a series of strikes and counter‑strikes in the Middle East. The events increased concern about exports transiting the Strait of Hormuz and shipping routes through the Red Sea, supporting demand for energy-sector assets. The energy sector rose about 1.7% and utilities gained roughly 2%.

Banking stocks weighed on the index. Barclays, Lloyds Banking Group and Standard Chartered fell between about 1% and 1.6%, limiting broader gains.

Consumer goods were weaker. The personal goods group declined about 4.3%, led by Burberry, which dropped more than 5.6% after the company said the conflict had reduced tourist spending across Europe even as sales grew in the United States and China in the April-June quarter.

GSK fell 3.8% after pausing development of an experimental treatment for refractory chronic cough following a late-stage trial that failed to meet key efficacy goals across several dosage levels.

Major energy companies showed pockets of strength. BP rose about 1% and ConocoPhillips climbed roughly 1.2% after both companies announced plans for significant new investments in Iraq aimed at increasing production capacity and diversifying export routes.

On the political front, Andy Burnham was confirmed as the United Kingdom’s next prime minister and is due to take office on July 20, succeeding Keir Starmer, who resigned on June 22. Burnham returned to Parliament in a June by-election and secured broad backing to become his party’s leadership candidate. He is expected to reshuffle his cabinet after taking office.

Since July 2016, the United Kingdom has had six prime ministers. The period has also seen multiple changes in finance and energy ministers, with seven finance ministers and eight energy ministers serving since then.

Overall, London’s market held near recent levels as higher oil prices supported energy and utility stocks while declines in banks, consumer goods and parts of healthcare limited gains, and investors monitored both regional geopolitical events and the change in UK political leadership.