FTSE 100 Edges Lower as Oil Prices Surge Towards $90

The FTSE 100 index is hovering below its July record of 10,991 as oil prices surge towards $90 per barrel. This recent rise in crude has left investors cautious ahead of a crucial US inflation report, which could impact equity valuations globally.

Brent crude climbed after fresh attacks on commercial shipping and fading hopes that the US and Iran would quickly agree on reopening the Strait of Hormuz. The tension is visible across Europe, with energy shares rising 0.7% and automobiles and parts falling around 0.8%.

The FTSE 100's hesitation contrasts with a broader European market that has been able to hold close to recent records. Corporate earnings have helped prevent a deeper pullback, with German warship maker TKMS jumping after lifting its outlook for the second time in six months.