FTSE 100 Rises as Middle East Oil Supply Concerns Boost Crude Prices

The FTSE 100 rose by 0.53% on Monday as concerns over disrupted Middle East oil supply pushed crude prices up. The gains in British stocks offset broader European weakness, with Germany's DAX falling 0.12% and France's CAC 40 losing 0.24%. Sterling slipped against the dollar, down 0.22% to 1.3497.

The increase in oil prices was driven by Saudi Arabia's shutdown of its East-West pipeline, a vital bypass route for Saudi oil exports during disruptions through the Strait of Hormuz. The delay of a planned meeting between Gulf states and Iran on managing the Strait also contributed to the rise in crude prices. ING's commodities strategists noted that the delay 'pushes any prospect of de-escalation even further out of reach.'

The escalation poses risks to oil markets, with Brent crude futures climbing 2.86% to $107.60 a barrel and U.S. WTI rising 2.77% to $102.81.