FTSE 100 Falls 0.08% as Iran Conflict Lifts Oil Prices and Weighs on European Stocks

The FTSE 100 slipped 0.08% Tuesday as renewed US-Iran conflict pushed oil prices sharply higher. London’s blue-chip index closed near 10,489.90, down from Monday’s 10,498.29 finish. A third consecutive night of US strikes on Iran rattled European markets broadly. Brent crude surged to $85.75 a barrel, its highest level in a month. 

Germany’s DAX and France’s CAC 40 both posted steeper losses than the FTSE 100. Energy heavyweights BP and Shell helped cushion the index’s overall decline. UK retail sales growth also slowed sharply, adding to Tuesday’s cautious mood.

FTSE 100’s Tuesday Session in Detail

The FTSE 100 (^FTSE) opened Tuesday close to Monday’s flat finish of 10,498.29. Selling pressure built through the morning as oil prices climbed sharply higher. The index touched an intraday low of 10,433.12, down 0.62%. Buying later in the session pared those losses considerably.

FTSE 100’s key levels throughout Tuesday’s session:

• The index opened near 10,498.70, barely changed from Monday’s close.
• Morning trade pushed the FTSE 100 down to 10,433.12.
• The index later recovered, closing down just 0.08% at 10,489.90.
• FTSE 250 fell further, dropping 0.76% to 23,218.90 in morning trade.

European Peers Fell Harder Than the FTSE 100

Germany’s DAX declined between 0.36% and 0.47% during Tuesday’s session. France’s CAC 40 fell more sharply, down as much as 0.88%. The FTSE 100’s energy-heavy composition helped limit its losses. That relative resilience stood out against broader European market weakness.

Third Night of US Strikes Rattles Markets

US Central Command launched a third consecutive night of strikes on Iran. The attacks targeted missile and drone sites near Bandar Abbas and Bushehr. Iran retaliated with strikes on Bahrain and Jordan shortly afterward. The UAE reported Iranian missiles struck two oil tankers in the Strait of Hormuz.

The human and shipping toll from Tuesday’s escalation:

• One crew member died after missiles struck tankers in the strait.
• Eight additional crew members sustained injuries during the attack.
• President Trump announced a renewed naval blockade on Iranian ports.
• Trump proposed a 20% cargo fee for vessels transiting Hormuz.

Iran and the IMO Push Back on the Fee

Iran’s foreign minister rejected Trump’s proposed cargo fee as “too much.” The International Maritime Organization said there was “no legal basis” for such tolls. Trump had notified Congress on July 10 that strikes resumed July 7. That followed the collapse of an earlier April ceasefire agreement.

Oil Prices Surge to a Four-Week High

Brent crude climbed 2.94% Tuesday to reach $85.75 a barrel. West Texas Intermediate gained 2.83%, trading at $80.36 per barrel. That marked Brent’s highest level in roughly four weeks. Rising energy costs directly benefited FTSE 100 oil majors during the session.

BP and Shell led FTSE 100 energy gains this week:

• BP shares rose 4.6% Monday, closing at 505.0 pence.
• Shell gained 2.3% Monday amid the broader oil price rally.
• Shell also announced a $1.8 billion sale of Solenergi Power.
• The buyer, Aditya Birla Renewables, includes the Sprng Energy group.

London stocks are expected to open broadly flat on Tuesday as investors weigh a fresh escalation in fighting between the US and Iran alongside sharply higher oil prices and upcoming US inflation data. FTSE 100 futures indicate little change at the open, with the index expected to… https://t.co/wL56hQan7E pic.twitter.com/OqoiSAuoNQ

— Share_Talk ™ (@Share_Talk) July 14, 2026

UK Retail Sales Growth Slowed Sharply in June

British Retail Consortium data showed June retail sales growth of just 1.9%. That’s down sharply from 3.7% growth recorded in May. In-store non-food sales declined 1.1% during the same period. Online non-food sales rose 5.1% as shoppers avoided the summer heat.

Additional data points behind the retail slowdown:

• June’s growth also trailed the 3.1% pace seen in June 2025.
• Grocery and clothing demand held up better than big-ticket purchases.
• Warm weather boosted sales of fans, air conditioning units, and paddling pools.
• Online retailers are expected to outperform physical stores in coming updates.

Stocks Moving on Tuesday Beyond Energy

IQE shares jumped 5% after winning a third AI-related order this year. The roughly $14 million deal will be manufactured at its Newport, Wales facility. Watches of Switzerland gained 4.2% Monday on renewed takeover speculation. PageGroup surged 20% after a stronger-than-expected second-quarter trading update.

Final thoughts

The FTSE 100’s modest 0.08% decline masks a genuinely volatile trading session. Intraday swings of over half a percent show real investor uncertainty underneath. Rising oil prices continue cutting both ways across different FTSE 100 sectors. Energy majors gain while airlines, retailers, and travel stocks face rising cost pressure. Wednesday’s US inflation data will likely determine whether this calm holds.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.