The FTSE 100 opened 68.09 points lower at 10,430.20 amid US strikes on Iran and a fresh Gulf escalation pushed oil prices sharply higher, affecting risk appetite across Europe. Meanwhile, Brent crude futures rose 3.54% to $86.25 a barrel, while US West Texas Intermediate (WTI) advanced 3.19% to $80.63 a barrel.

Sterling was quoted at $1.3366 early Monday, lower than $1.3378 at the London equities close on Monday. Against the euro, sterling fell to €1.1727 from €1.1733 a day prior.

Gainers & Losers

On the upside, BP rose 2.99% to £520.10, while Vodafone Group advanced 1.72% to £118.15. Centrica gained 1.71% to £175.45, and Shell climbed 1.58% to £3,158. Glencore added 1.46% to £522, while Rio Tinto climbed 1.46% to £6,831.

On the downside, Games Workshop Group declined 1.09% to £20,000, while AstraZeneca slipped 1.33% to £12,442. Next fell 1.12% to £14,595, and London Stock Exchange Group edged lower by 1.73% to £8,854. Lion Finance Group dropped 1.13% to £11,420, while 3i Group eased 3.09% to £2,603.

Debenhams Owner Could Sell Brands

Debenhams Group has said it could sell off some of its brands to eliminate its £90 million debt. The group, which owns Debenhams, Boohoo and Pretty Little Thing, said on Tuesday it plans to slash its debt, which stood at £93 million in its recent financial year, to below the level of its pre-tax earnings. 

“With strategic brand licensing opportunities and potential business disposals, there is the opportunity to eliminate the debt,” the firm said. 

Debenhams Group saw “positive” trading in June and July, it said, as it capitalised on the hot summer weather.

BP’s Oil Production Declines

BP’s oil production declined as upstream production of oil and gas is set to come in at as low as 2,170 thousand barrels equivalent in the second quarter of the year, a fall of 7.3% compared to the first quarter. 

However, BP has been fueled by soaring oil prices, which averaged $103.85 per barrel in the second quarter, a jump of 28% compared to the first quarter. 

Brent crude prices slid back to $72 per barrel at the start of the month on renewed hopes of an end to the Middle Eastern Conflict. But since then has climbed to a four-week high above $80.

Also Read: Stock Market Update: Foreign Investors Returning to Indian Market, What’s Next in July?

Retail Sales Growth Softens

UK retail sales grew 1.9% year-on-year in June, down from a 3.7% gain in May, according to the BRC-KPMG Retail Sales Monitor. 

Like-for-like sales rose 1.7%, down from 3.4% in May, and below the consensus forecast of 2.7%. Food sales increased 2.8%, below the 12-month average growth of 3.4%, while non-food sales were up 1.2%, above the 12-month average growth of 0.6%. 

KPMG's Linda Ellett says, "As the summer holiday season gets set to fully begin, retailers will be looking to build on the increase in clothing sales for both adults and children that was seen during June."

Global Market View

In US, Wall Street began the week on a weaker note, with the tech-heavy Nasdaq leading the decline, tumbling 1.6%, while the S&P 500 dropped 0.8% and the Dow Jones fell 0.3%.

In Asia on Tuesday, Tokyo's Nikkei 225 rose 0.74% to 67,743.5, while China’s Shanghai Composite gained 1.36%. Hong Kong’s Hang Seng climbed 0.50%, and South Korea’s Kospi advanced 0.72%. In India, Nifty 50 and Sensex declined by 0.5% and 0.52%, respectively.