Friday Morning Markets: FTSE 100 Slips as Oil Holds Hormuz Risk Premium

The FTSE 100 is down 0.1% in early trade, while the FTSE 250 is up 0.1%. Germany’s DAX is up 0.8%, the CAC 40 is flat and the Euro Stoxx 50 is up 0.5%. The blue-chip index is on course for a weekly gain of roughly 2.7%.

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Oil markets

Brent is down 0.5% at $105.45, while WTI is down 0.7% at $97.30, spot gold is up 0.4% at $4,185 and sterling is up 0.2% at 1.3309 against the dollar.

ING analysts said in a note:

Uncertainty in the Middle East and concerns over the sustainability of oil flows through the Strait of Hormuz has the market pricing in a significant risk premium

ING analysts

Meanwhile, Amir Hatami, Iran’s army commander-in-chief, said the strait “will remain closed until the enemy respects the rights of the Iranian people”, according to Iran’s Mehr News Agency.

Furthermore, US President Trump has reportedly said that he “would not use” nuclear weapons against Iran, and did does not see “putting US troops on the ground” there.

Movers: THG, WPP, Lloyds, Antofagasta

Index	Top risers	Top fallers
FTSE 100	WPP +3.70%, Babcock +1.98%, 3i +1.43%	Antofagasta -2.57%, Lloyds -2.50%, NatWest -2.34%
FTSE 250	THG +5.25%, PPHE +3.60%, CMC Markets +3.24%	Princes Group -5.58%, JEMI -2.94%, Ocado -2.33%

Antofagasta fell more than 6% yesterday after weaker-than-expected 2027 copper production guidance, while it was reported that negotiations between the company and two striking unions at Chile’s Centinela copper mine showed no progress.

THG jumped yesterday after raising its full-year earnings guidance.

Man Group’s assets under management, the client money it manages, reached $270.9bn. Ithaca Energy’s chief executive, Luciano Vasques, intends to retire by 31st of March 2027, and JD Sports’ senior independent director Kath Smith will step down on the 19th of January 2027.

Aviva is holding a Wealth briefing for investors and analysts from 9 am, and said that it is on track for £280m of Wealth operating profit by 2027.