The FTSE 100 closed flat on Monday after a weekend of despicable violence in Israel spilt over into financial markets.
The human tragedy unfolding in Israel and Gaza Strop has heightened geo-political concerns and provided support for oil prices.
Brent oil was trading up around 3% at $86.98 per barrel. Brent has been trading closer to $100 in recent weeks. Elevated oil prices feed through to higher share price for BP and Shell who were central to the FTSE 100’s rise on Monday.
“The FTSE 100 was steady on Monday after the shocking events in the Middle East over the weekend, with the index supported by its oil heavyweights BP and Shell,” said AJ Bell investment director Russ Mould.
“As it nearly always does, an escalation of tensions in the region has helped push up oil prices. This is inevitable given how much of the world’s crude reserves and production are centred there.”
London’s listed airline companies were among the top fallers on Monday with FTSE 100 IAG sinking 5%. Fears are that prolonged war in Israel will dampen tourist demand across Europe as higher fuel prices erode profits.
Elsewhere, Aviva shares continued to benefit from takeover speculation after reports last week the insurer was being eyed by multiple parties.