London stocks edge higher as Shell boosts FTSE 100 energy gains

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FTSE 100 gains on Shell

Highlights

FTSE 100 rises 0.2% to 10,673.85, led by a 1.9% climb in energy stocks and gains in consumer names like Burberry, Diageo, and Unilever.
Shell advances 2.4% after boosting Q2 gas production forecast and flagging stronger gas trading, while BP adds 0.9% amid higher oil prices following Strait of Hormuz tensions.
Precious metals miners decline 1.9% as gold weakens on dollar strength, offsetting some gains, while UK house prices rise 0.2% in June after months of stagnation.

Energy stocks and consumer names support the market

As reported by Reuters, the blue-chip FTSE 100 rises 0.2% to 10,673.85 points by 1057 GMT, while the midcap FTSE 250 slips 0.2%. The benchmark index draws support mainly from energy shares, which climb 1.9%, and from a group of consumer-focused stocks that also rank among the session's strongest performers.

Shell jumps 2.4% after raising its second-quarter gas production forecast and signalling significantly stronger gas trading than in the previous quarter. BP also adds 0.9%, while Burberry, Diageo and Unilever gain between 3% and 3.7%.

Oil prices also move higher after reports of attacks on vessels near the Strait of Hormuz revive concerns about disruptions to shipping through one of the world's most important energy transit routes. That backdrop adds further support to London-listed energy producers and helps offset weakness elsewhere in the market.

Miners lag as investors weigh geopolitics and UK housing

On the weaker side, precious metals miners fall 1.9% as gold prices ease under pressure from a stronger U.S. dollar. The decline in mining stocks limits broader market gains even as the FTSE 100 remains in positive territory.

Investors are also following international political developments. Iran's foreign minister says talks on a final deal between Tehran and Washington will not start if U.S. threats continue, after U.S. President Donald Trump threatens to "finish the job" if an agreement is not reached.

In Europe, NATO leaders begin unveiling arms deals worth tens of billions of dollars in Turkey ahead of a summit with Trump, underscoring pressure on allies to spend more on defence. In the domestic economy, British house prices rise 0.2% in June, their first monthly increase since February, although Lloyds says the outlook remains clouded by economic uncertainty.

In our earlier article on oil prices rising amid Strait of Hormuz disruption risks, we explained how attacks on vessels and uncertainty around U.S.-Iran talks kept a geopolitical premium in crude. We also noted that the rally was being capped by signs of recovering Gulf shipping flows and ample supply, including Saudi pricing cuts and OPEC+ output increases.

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