Oil Prices Plummet Amid Improved Middle East Supply Outlook

The FTSE 100 index rose by 0.73% on Monday, defying falling oil prices for a fourth straight session.

The decline in oil costs eased inflation concerns, which have been a major factor influencing market expectations of interest rates set by the Bank of England.

Danske Bank attributed the latest dip in oil prices to improved supply outlook in the Middle East, citing a possible US-Iran diplomatic meeting and increased shipments through the Strait of Hormuz.

The economic backdrop remains mixed, however, as S&P Global's UK Consumer Sentiment Index hit a three-month low of 42.7 in September, with shoppers concerned about energy bills, living costs, and job prospects.