The FTSE 100 opened the week on a positive note. Despite  rising geopolitical tensions and increasing oil prices, the index is  advancing. It gained 0.5%, or 51.67 points, reaching 10,312.82, supported by strength in energy and industrial stocks.

Brent crude oil prices climbed above $106 per barrel. The figure continues to reflect concerns that the ongoing Middle East conflict could disrupt energy supply routes.

Energy and Industrial Stocks Lead 

BP shares rose by £7.5 to £541.8, benefiting from the sharp rise in crude oil prices. Shell also gained nearly £39.5 to £3,407. This shows how investors expect stronger profits if oil prices continue to stay high.

Rolls-Royce climbed to around £1,226, while B&Q owner Kingfisher advanced nearly 2% to £313. The positive momentum among these companies helped offset weakness in defensive sectors.

HSBC and Standard Chartered both rose around 0.5%, supported by strength in Asian markets. Kingfisher gained 1.65% to £313.70, and Perishing Square Holdings advanced 1.35% to £4,312.

Decliners Reflect Broader Market Caution

Pharmaceutical giant AstraZeneca fell 0.4% to £14,322, while mining company Fresnillo dropped 1.5% to £3,356. 

Severn Trent backed 0.86% to £3,131, Antofagasta dipped 0.43% to £3,488, and Games Workshop declined 0.06% to £17,250.

Oil Prices Drive Inflation Concerns

Brent Crude touched $106.50 a barrel in early trade in Asia, rising over 40% since the start of the Middle East conflict on 28th February. 

The latest gains reflected the reaction to US bombing raids on Kharg Island, which accounts for about 90% of Iran's crude exports. 

Deutsche Bank said, “For now, President Trump said in a post that he’d chosen not to destroy the oil infrastructure, but he also said he’d reconsider that if Iran interfered with ships’ passage through the Strait of Hormuz.”

Rising Energy Costs Could Hit Households

According to estimates from Capital Economics, if crude prices remain around $100 per barrel throughout the year, the average UK household could face additional annual costs of up to £1,500.

The breakdown includes £780 in higher fuel expenses, £163 in increased utility bills, and around £516 in additional mortgage costs.

The Bank of England is widely expected to keep interest rates unchanged at 3.75%, as policymakers assess the impact of rising energy costs on inflation.

Also Read: Stock Market Today: Sensex Flat at 74,560, Nifty at 23,148 Amid US-Iran War; Adani Power Jumps 4% 

Standard Life Increased Dividend 

Standard Life has upped its dividend as profits rose. The pensions giant said it had increased its total dividend for the year by 2.6% to £55.40 per share. 

It came as profit rose 15% to £945 million, backed by momentum in the group's pensions and savings division and retirement solutions divisions. 

Standard Life said it successfully retired approximately £400 million in debt during the year, reducing its Solvency II leverage ratio, a backstop aimed at mitigating excessive debt levels, to 33% as it locks its sights on a 30% goal for the end of 2026.