MercoPress. South Atlantic News Agency

London Stock Exchange rises 1.26% driven by oil and defense sectors

Oil companies led the day, benefiting from the rebound of Brent crude, which at the close of the European stock market session surpassed USD 111 per barrel with an advance of close to 1.70%

The London Stock Exchange closed on Monday with a gain of 1.26%, driven by the advance of oil and defense companies, in a session marked by the rise of crude oil amid the lack of progress in negotiations between the United States and Iran to end the war. The main index, the FTSE 100, added 128.38 points to close at 10,323.75, while the secondary FTSE 250 advanced 0.07% to 22,611.70 points.

Oil companies led the day, benefiting from the rebound of Brent crude, which at the close of the European stock market session surpassed USD 111 per barrel with an advance of close to 1.70%. Shell rose 2.97% and BP 2.70%, in line with a sustained pattern over the three months of war by the United States and Israel against Iran, which has kept the Strait of Hormuz closed and reduced the global supply of oil. Gas firm Centrica was the index's biggest gainer, with a 4.07% rise.

The defense sector also tracked the upward trend, in line with the sustained rise in global military spending recorded by the latest report of the Stockholm International Peace Research Institute. Babcock International gained 2.59% and BAE Systems, the United Kingdom's main defense contractor and a benchmark for the sector in Europe, rose 1.62%. Both companies hold significant contracts with the British Ministry of Defence and with NATO partners as part of the ongoing armed forces modernization race.

On the other side, miner Anglo American fell 1.36% after announcing the sale of its metallurgical coal mines in Australia to fellow British firm Dhilmar, in a deal valued at up to USD 3.88 billion. Investment fund 3i posted the largest drop of the session with a 5.79% decline, followed by telecommunications firm Airtel Africa, which retreated 4.75%.

The session consolidated the behavioral pattern of European markets during the conflict: gains in the energy and defense sectors, with downward pressure on shares most exposed to emerging economies. Brent crude's price has now risen more than 60% since the start of the war in late February.