FTSE 100 opens flat as Middle East risks continue to dominate sentiment
The FTSE 100 opened broadly unchanged around 10,700 as Middle East risks continued to dominate sentiment, supporting energy and mining stocks while investors watched Segro, 3i Group and the ECB.
written by
Andreas Lipkow
Chief Market Analyst
23 Jul 2026, 08:35
FTSE 100 opens flat as geopolitical risk dominates
The FTSE 100 opened Thursday's session broadly unchanged at around 10,700 points, with investors maintaining a cautious stance as geopolitical tensions continue to overshadow the market outlook.
The conflict in the Middle East is increasingly threatening to evolve into a broader regional crisis, with new flashpoints emerging almost daily.
Supply-chain risks extend beyond Hormuz
Supply chain concerns are now extending beyond the Strait of Hormuz to the Red Sea, creating a second major bottleneck for global energy shipments.
As a result, the conflict involving Iran risks becoming just one element of a wider geopolitical confrontation, while Tehran's regional allies continue to increase the perceived threat level.
Commodity stocks find early support
The resulting rise in oil and precious metal prices reflects these growing risks and is providing support for energy and mining stocks.
Shares of BP, Shell, Anglo American, and Glencore are among the early outperformers as investors seek exposure to sectors that typically benefit from higher commodity prices.
Segro and 3i Group stay in focus
Meanwhile, the latest earnings reports from US technology companies Alphabet, Tesla, and ServiceNow are having only a limited impact on the UK market. Instead, investors are focusing on company-specific developments within the FTSE 100.
Segro remains in the spotlight after Prologis reportedly improved its takeover proposal in an effort to secure a successful transaction. Shares of investment firm 3i Group are also moving higher following quarterly results that exceeded market expectations.
ECB decision may shape Bank of England expectations
Attention will now turn to the European Central Bank's policy decision later today. While UK investors do not expect any immediate policy changes affecting Britain, they will scrutinise the ECB's statement and President Christine Lagarde's comments for signals on inflation and the future direction of monetary policy.
Given the similarities between the macroeconomic challenges facing the UK and the Eurozone, investors are likely to draw important conclusions for the outlook of the Bank of England as well.
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FTSE 100 holds around 10,573 as investors assess political change and Middle East risks
The FTSE 100 is trading near 10,573 as investors assess the UK's political transition, Middle East tensions, elevated oil prices and mixed sector performance across defence, energy and consumer stocks.
