FTSE 100 Ticks Up Amid ECB Rate Decision Looms and US-Iran Oil Market Volatility

The FTSE 100 index rose modestly on Thursday as investors positioned themselves ahead of the European Central Bank's interest-rate announcement. The ECB is widely expected to increase its benchmark rate by 25 basis points, with markets focused on the tone of any accompanying policy guidance.

Elsewhere, geopolitical tensions between the US and Iran continued to simmer, with reports of projectiles striking locations in southern Iran and explosions reported across Minab County and Qeshm Island. The Strait of Hormuz saw a sharp drop in vessel transits, falling from 12 on Tuesday to seven on Wednesday.

ING analysts warned that current signals point to further escalation, keeping upside pressure firmly in place. They noted that significant disruption to Strait of Hormuz flows could tighten the oil market more sharply than recent weeks had indicated.