FTSE 100 Edges Higher Amid Middle East Tensions and Oil Price Surge

The UK’s FTSE 100 index saw gains led by energy shares as oil prices rose due to Middle East tensions. While the FTSE 100 rose 0.2%, the FTSE 250 fell by 0.6%. Prudential and aerospace sectors performed well, whereas the automobiles sector saw notable declines.

Energy shares led the UK's FTSE 100 index higher by 0.2% on Wednesday, driven by rising oil prices amid escalating tensions in the Middle East. However, caution prevailed among investors assessing the risk of increased conflict in the region.

Oil and gas shares climbed 1.6%, hitting a weekly high, as fears of disrupted crude production from the Middle East surged following Iran's significant military action against Israel. Despite this, the market reaction remained relatively subdued, with many investors refraining from panic selling.

The industrial metal miners also gained 1.2% due to higher copper prices buoyed by China's stimulus measures, while insurer Prudential topped the FTSE 100 with a rise of over 4%. On the other hand, the automobiles and parts index declined by 2.8%, led by a 7% drop in Aston Martin shares.

(With inputs from agencies.)