Uncertainty over the reopening of the Strait of Hormuz today kept the oil price close to $100 a barrel.
The FTSE 100 index also traded in a narrow range after this week’s Middle East ceasefire boosted valuations on Wednesday.
Meanwhile, figures due later are set to show a jump in the annual rate of US inflation after gasoline prices surged in March.
Market update: FTSE 100 set for weekly rise, oil price near $100
Cautious trading ahead of Middle East peace talks today kept the FTSE 100 index near its opening mark and the price of Brent Crude close to $100 a barrel.
London’s top flight rose 12.80 points to 10,616.28, meaning a weekly rise of about 2% after Tuesday’s ceasefire agreement triggered a relief rally for global markets.
However, oil prices have stayed elevated after President Trump said Iran was “doing a very poor job” allowing tankers to pass through the Strait of Hormuz.
Only a few vessels have passed through the all-important waterway, a vital artery for the world’s oil over which Iran has a stranglehold.
Brent Crude rose 1.8% to $97.68 a barrel in today’s dealings, having been $110 earlier in the week and near $90 in the hours after the truce was announced.
Wall Street traders are braced for an inflation shock later, with the March consumer price index reading set to show a jump in the annual rate from 2.4% to 3.3%.
Bond yields edged higher this morning amid fears that a prolonged period of high energy prices will force policymakers to hike interest rates.
The uncertainty ahead of diplomatic talks in Pakistan this weekend was reflected in a lacklustre session across European markets, with benchmarks in Paris and Frankfurt also close to their opening marks.
In the FTSE 250 index, AO World rose 5% or 4.3p to 93.1p after the online electricals retailer signalled a 15% rise in annual profits to a record near £50 million.
North Sea oil price sets record high
North Sea oil prices have risen to a new record high as traders rush to secure supplies.
It came as US President Donald Trump accused Iran of not abiding by a ceasefire agreement to immediately open the Strait of Hormuz.
Forties Blend, the marker used for cargoes of oil produced off the coast of the UK, rose to almost $147 (£109.50) a barrel late on Thursday.
The price of oil from the North Sea has soared since the start of the conflict in the Middle East and is up from around $60 a barrel at the start of the year.
FTSE 100 makes steady start, oil price higher
The FTSE 100 index has dipped 6.41 points to 10,597.07 after the price of oil rose by 1.5% to more than $97 a barrel.
The steady start follows a positive session for Asia markets, including a rise of 1.8% for the tech-focused Nikkei 225.
Wall Street futures are pointing to a mixed session for US benchmarks when trading resumes later today.
The FTSE 100 leaders board included Burberry, which lifted 2% or 20.4p to 1153.8p, and B&Q owner Kingfisher following an advance of 4.5p to 304.6p.
Food services firm Compass dropped 3% at the bottom of the FTSE 100, while Rolls-Royce faded 8p to 1271.8p and BP weakened 5.9p to 574.6p.
AO World backs top-end profit guidance
AO World today said full-year profits will be about 15% higher at the top end of its recently upgraded guidance range of between £45 million and £50 million.
The online electricals retailer, which is due to report results on 17 June, achieved revenues growth of 11% in the year to 31 March.
John Roberts, AO's founder and chief executive, said: "The numbers speak for themselves again and I am delighted to keep doing our talking on the pitch.”
He added that AO will soon become the first company globally to reach one million Trustpilot reviews with a 4.9 rating from customers.
Hedging arrangements put in place before the Middle East war cover about 80% of the current year’s forecast fuel usage and 100% of electricity usage.
Shopper footfall below expectations for March - BRC
Shopper footfall failed to meet expectations in March despite Easter and the school holidays falling earlier than usual.
Total UK footfall was up by 2.4% year on year, according to the British Retail Consortium (BRC) and Sensormatic.
High street footfall increased by 2% in March, up from a drop of 5.4% in February, while shopping centre visits were up by 2.6%, an improvement on the 5.5% fall seen the month before.
BRC chief executive Helen Dickinson said: “Shopping centres outperformed other locations and cities like Manchester continued to do well but overall growth fell short of expectations.”
US inflation figures for March are due for release later, with Wall Street economists braced for a big jump in the annual rate from 2.4% to about 3.3%.
The highest reading in almost two years has been driven by a surge in gasoline prices, which will mean a monthly rate of 0.9% - the biggest number since June 2022.
The core inflation rate, which excludes energy and food prices, is set to show a monthly rise of 0.3% and annual rate of 2.7%.
Oil price edges higher, FTSE 100 set for positive start
Uncertainty over the reopening of the Strait of Hormuz today kept the price of Brent Crude elevated at $96.67 a barrel, having edged up in Asia trading.
The FTSE 100 is seen opening about 0.2% higher after registering a decline of 5.40 points at 10,603.48 in yesterday’s session .
The FTSE 250 reversed 1%.
The top flight’s expected improvement follows last night’s gains of 0.6% for the Dow Jones Industrial Average and the S&P 500 index.
Asia markets also traded higher, with the Nikkei 225 index up by 1.9% shortly before the market close.
The price of gold, meanwhile, is broadly unchanged at $4766 an ounce.
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