Tuesday Morning Markets: FTSE Falls as Oil Continues Higher; BP and Shell Lead

London stocks are trading lower on Tuesday, with the FTSE 100 down 0.6% and the FTSE 250 off 0.7%.

The mood is weaker across the continent, where Germany’s DAX is down 0.5%, France’s CAC 40 has dropped 0.9% and the Euro Stoxx 50 has declined 0.7%.

Energy leads the way once more…

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Brent crude has jumped more than 3% after the latest round of U.S.-Iran strikes over the Strait of Hormuz, with President Donald Trump saying Washington will reinstate its naval blockade and is planning a Hormuz transit fee.

Brent for September delivery has hit its highest since mid-June.

BP (LON:BP.) has topped the blue-chip index so far today, up 2.77%, aided by a second-quarter trading statement pointing to stronger refining margins and falling net debt, though production was lower due to Middle East disruption.

Meanwhile, Shell (LON: SHEL) has risen 1.93%. Vodafone (LON: VOD) has added 2.07%, extending its post-Niel deal rally.

On the downside, InterContinental Hotels (LON: IHG) has fallen 3.64%, Pearson (LON: PSON) has dropped 3% and Melrose Industries (LON: MRO) has slid 3.00%.

AstraZeneca (LON: AZN) licensed Dizal’s oral EGFR inhibitor Zegfrovy for lung cancer, paying $600 million upfront plus up to $900 million in milestones.

British Land (LON: BLND) issued an AGM trading update, while Watches of Switzerland (LON: WOSG) reported its FY26 earnings after a report that it held take-private talks lifted the shares on Monday.

Among midcaps, Atalaya Mining (LON: ATYM) has risen 6.29% on a second-quarter operations update, Rank Group (LON: RNK) is up 5.82% after flagging full-year profit ahead of expectations, and Genus (LON: GNS) has climbed 5.21% on guidance for FY26 adjusted pre-tax profit of about £98 million, moderately ahead of consensus.

ME Group (LON: MEGP) has fallen 5.31%, Workspace (LON: WKP) has lost 4.20% and Raspberry Pi (LON: RPI) has dropped 3.86%.

Later today, investors will be watching the latest inflation data in the US, while Fed Chair Warsh will testify before the House Financial Services Committee.