London’s primary stock indexes concluded the week with robust gains on Friday, rallying as equities responded to Iran’s foreign minister’s declaration that the Strait of Hormuz remains open. This, coupled with U.S. President Donald Trump’s belief that an Iran deal would emerge “soon,” saw oil prices plunge below $90 a barrel. The decline in crude costs provided a significant uplift for stocks and government bonds. The blue-chip FTSE 100 index closed 0.7% higher at 10,667.63 points, marking its fourth consecutive week of gains. The mid-cap FTSE 250 climbed 1.9%, extending its winning streak for three weeks.
The drop in crude prices particularly benefited travel and leisure stocks, with Wizz Air, Carnival, and easyJet all gaining above 6%. Precious metal miners collectively rose 5% tracking bullion prices. Heavyweight banks also advanced 2.3%, including Barclays, Standard Chartered, and HSBC. Defence stocks like BAE Systems and Rolls-Royce saw positive movement. Fresnillo climbed 6.4% and British Airways owner IAG added 6.2%, among top individual gainers. Bank of England Chief Economist Huw Pill reiterated on Friday that the central bank’s primary focus remains on bringing inflation down to its 2% target.
Conversely, oil giants faced headwinds due to falling crude prices, with BP declining 7.4% and Shell dropping 5.6%. The utilities sector also experienced a downturn after the Financial Times reported that Finance Minister Rachel Reeves vowed to sever the link between gas and electricity prices. This sent the sector down, affecting National Grid, Severn Trent, SSE, and Centrica. Additionally, Workspace Group, an office-space provider, saw its shares fall 6.2%. The company announced expectations for a substantial step down in its annual profit.
