FTSE 100 climbs as oil rebounds and US tech rally offsets geopolitical tension

The FTSE 100 nudged up on Friday, buoyed by a rebound in Brent crude that pushed the benchmark back above $90 a barrel, while US technology shares surged after Nvidia reported a more than double‑year‑on‑year sales jump.

Investors welcomed the oil bounce because it eases pressure on energy‑heavy stocks that have dragged the UK market lower in recent weeks, and the US tech rally offered a counter‑balance to lingering geopolitical uncertainty.

Oil price recovery lifts UK equities

After a sharp decline earlier in the week, Brent crude recovered about 1.5 per cent on Thursday night, a move that helped lift energy‑linked constituents such as Shell and HSBC. The price rise followed reports that Iran’s military reached a revenue‑sharing deal with Oman over the strategic waterway, though Tehran said the agreement would not immediately reopen the Strait of Hormuz. Qatar’s prime minister also visited Tehran to discuss the passage, adding to the mixed signals.

US tech surge and political backdrop

Across the Atlantic, US markets were dominated by a tech rally, with Nvidia leading the charge after announcing sales that more than doubled year‑on‑year. AJ Bell’s head of markets, Dan Coatsworth, noted that while tech stocks were “electric”, traditional defensive names such as AstraZeneca and British American Tobacco weighed on the FTSE, highlighting a rotation away from “stodgy all‑weather businesses”.

“No negotiations are happening right now and this will continue until the president feels that maybe they come to the table in a meaningful way. We have not seen that yet,” said Karoline Leavitt, press secretary for President Donald Trump.

The White House reiterated that it is not in talks with Iran, a stance that dampens expectations of a rapid diplomatic thaw and keeps oil market participants cautious.

Looking ahead, traders will watch the upcoming Jackson Hole symposium for clues on monetary policy, while oil exporters aim to restore volumes to two‑thirds of pre‑conflict levels, according to a recent Goldman analysis. A sustained oil price above $90 could keep the FTSE’s energy sector in the green, but any escalation around the Strait of Hormuz would likely reverse the gains.

For now, the market appears to be balancing a modest recovery in commodities with the momentum of US tech, a mix that could dictate the FTSE’s direction in the coming weeks.