Wednesday Morning Markets: Oil Slides on Hormuz Hopes as FTSE 100 Dips

London shares opened mixed on Wednesday. The FTSE 100 slipped 0.2% as energy majors weighed on the index, while the more domestically-focused FTSE 250 edged up 0.2%.

On the continent, Germany’s DAX has fallen 0.2%, France’s CAC 40 rose 0.5% and the pan-European Stoxx 50 added 0.1%.

Oil prices have extended a three-day slide after Iran and Oman signalled progress towards a deal to allow safe passage through the Strait of Hormuz, even though Tehran insists the strait remains formally closed.

Brent crude has dropped 2.4% to $85.18 a barrel and WTI has fallen 2.8% to $80.07, dragging BP (-2.36%) and Shell (-1.64%) lower.

Shell is also in the news after reports yesterday said that Exxon and other bidders are circling roughly $8bn of its US chemical assets.

Spot gold has slipped 0.6% to $4,630 as investors await key US economic data, including the core PCE price index, durable goods orders and GDP growth QoQ, later today.

Among FTSE 100 risers, miner Antofagasta gained 1.92% and Melrose Industries added 1.88%, while Halma rose 1.51%.

Sage Group is the biggest faller, down 3.30%.

In the FTSE 250, Applied Nutrition surged 7.93% after an upbeat trading update showed FY26 EBITDA and revenue running ahead of expectations, with FY27 guidance also above consensus.

Hochschild Mining jumped 6.24% following interim results showing revenue up 62% and adjusted EBITDA more than doubling, alongside a sharply higher interim dividend. Rank Group rose 5.16%.

On the downside, Softcat fell 3.07%, Oxford Nanopore Technologies dropped 2.95% and PPHE Hotel Group slipped 2.44%.

Elsewhere, investors also digested a “no intention to bid” statement from AEW UK REIT and a monthly performance update from Pantheon International.