12th Mar 2026 06:53
(Alliance News) - Stocks in London are set to open lower on Thursday, as oil prices surge back above USD100 a barrel and tensions in the Middle East continue to dominate market sentiment.
IG says futures indicate the FTSE 100 to open down 8.9 points, 0.1%, at 10,344.67 on Thursday. The index of London large-caps closed down 0.6% at 10,353.77 on Wednesday.
Oil prices climbed sharply after explosions were reported on two more foreign ships in the Gulf, with Brent oil trading at USD100.58 a barrel early Thursday, higher than USD91.93 late Wednesday.
Prices have continued to rise despite major countries agreeing to release a record amount of oil from emergency reserves in an effort to calm markets. The International Energy Agency, which includes the UK and US, said it will release 400 million barrels from strategic reserves – roughly four days of global consumption.
Meanwhile, Iran warned oil could reach USD200 a barrel as attacks on shipping intensify in the Strait of Hormuz, with explosions reported on at least two more foreign tankers overnight.
The US Department of Energy also confirmed it will release 172 million barrels from the Strategic Petroleum Reserve beginning next week as the Middle East conflict disrupts energy markets. The department said the release would take around 120 days to complete based on planned discharge rates.
US President Donald Trump meanwhile promised "great safety" for oil tankers passing through the Strait of Hormuz, as Tehran tightened its grip on the key maritime passage during the ongoing US-Israeli conflict with Iran. "I think you're going to see great safety, and it's going to be very, very quickly," Trump told reporters at the White House when asked how the US would secure the vital waterway for global oil trade.
Trump also said there was "practically nothing left to target" in Iran, adding that the war would end "soon".
Sterling was quoted at USD1.3378 early Thursday, lower than USD1.3410 at the London equities close on Wednesday.
The euro traded at USD1.1550 early Thursday, lower than USD1.1571 late Wednesday. Against the yen, the dollar was quoted at JPY158.96, higher versus JPY158.81.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.3%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong fell 0.9%.
The S&P/ASX 200 in Sydney closed down 1.3%, as inflation concerns also weighed on sentiment after Australian consumer inflation expectations edged higher in March. According to a Melbourne Institute survey of consumer inflationary and wage expectations, expected inflation rose to 5.2% in March from 5.0% in February.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.1% and the Nasdaq Composite up 0.1%.
Inflation data was also in focus after analysts said US price pressures remain too firm for the Federal Reserve to provide more support to the labour market. Consumer price inflation was steady in February, though economists expect the outlook to change later in the year.
The Bureau of Labor Statistics said consumer prices grew 2.4% on-year last month, in line with expectations cited by FXStreet, and matching January's increase.
Also in the US, Washington launched a new probe into several major trading partners after the Supreme Court struck down part of President Donald Trump's tariff policy last month.
US Trade Representative Jamieson Greer said the Section 301 investigation into unfair trade practices could lead to new levies on countries including China, the EU, India, Japan, South Korea and Mexico by the summer.
The probe could allow the US to impose import taxes on goods from any country found to have engaged in unfair trade practices. Greer said he hopes to conclude the investigations before temporary tariffs introduced by Trump in late February expire in July.
"The United States will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us," Greer said in the announcement, external.
Back in the UK, the latest residential market survey from the Royal Institution of Chartered Surveyors showed continued downward pressure on house prices.
The net balance for house prices, measuring the share of surveyors reporting rising prices minus those seeing declines, slipped to minus 12% in February from minus 10% in January. The FXStreet-cited consensus forecast had expected a reading of minus 9%.
Gold was quoted at USD5,160.50 an ounce early Thursday, lower than USD5,172.30 on Wednesday.
In Thursday's corporate calendar, it is a busy day for company updates in London, with Computacenter reporting full year results, Halma issuing a trading statement, and M&G, Informa and Savills also publishing full year results among those updating the market.
In the economic calendar on Thursday, Ireland CPI, US weekly jobless claims, US trade balance, US building permits and Canada trade balance are due.
By Eva Castanedo, Alliance News reporter
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