FTSE 100 Bounces on Oil Price Surge Amid Mideast Tensions

The FTSE 100 index rose 0.5% on Monday as fears over disrupted Middle East oil supply pushed crude prices sharply up, offsetting broader European weakness.

Heavyweight energy majors such as Shell and BP gained 1.6%, while defensive stocks like Unilever rose 3%. The Sterling slipped against the dollar, with GBP/USD down 0.3% to 1.3491.

Oman postponed a planned meeting between Gulf states and Iran on managing the Strait of Hormuz, citing the need for consensus. ING's commodities strategists said this delay pushes any prospect of de-escalation 'even further out of reach.'

ING noted it's unclear how severe any potential damage is, or how long the East-West pipeline will be out of action.