The FTSE 100 reversed early losses on Friday as investors shrugged off strikes in the Middle East and disappointing UK economic data.

London’s leading index was up 0.3% at the time of writing.

Ongoing fears about oil and UK growth hit markets early on Friday, but the index rallied 100 points off the lows as the session progressed.

“Worries about how the UK economy will withstand the energy crisis have ratcheted up after a highly disappointing report card showed growth stalled in January,” said Susannah Streeter, chief investment strategist, Wealth Club.

“The Office for National Statistics painted a picture of stagnation for the UK, with the mighty services sector flatlining and production contracting, with the construction sector only just eking out growth.

“It doesn’t bode well for the resilience of companies ahead, faced with escalating energy prices which are likely to see many businesses battening down the hatches, putting investment plans on hold while hoping the storm subsides. Stagflation is stalking the UK economy, with inflation set to rise while stagnation settles in, with risks increasing that the economy could go into reverse.”

Although the FTSE 100 was down on Friday, the declines were relatively contained, suggesting an element of complacency given the risk to inflation from the conflict, which shows no signs of ending.

There were mixed fortunes for commodities firms, as higher oil prices supported BP and Shell, while a declining gold price hit Fresnillo, down 2%.

Berkeley Group was among the fallers after releasing a mixed trading update.

“Berkeley reaffirmed its £450m pre-tax profit guidance for the current year and FY27, alongside a target of around £300m in net cash, signalling confidence in its balance sheet despite a challenging backdrop,” said Mark Crouch, market analyst for eToro

“The broader market, however, remains fragile. Geopolitical tensions and macro-economic uncertainty have shaken consumer confidence, although Berkeley notes that sales enquiries remain solid and reservation levels are beginning to recover.”

Berkeley shares were down 3% at the time of writing.

‘Safer’ names, including Imperial Brands and Tesco, provided some balance to losses elsewhere with gains in the region of 1%.

Cadence Minerals has provided an update on its flagship Amapá iron ore project in Brazil, noting that it has completed detailed engineering studies at the Azteca plant, and says early refurbishment works are set to begin this month.

The AIM-listed company said an active procurement and mobilisation package is now in place, with critical refurbishment items already requested and contractors aligned to a 90-day execution programme.

The update didn’t contain any fireworks, but it shows things are heading in the right direction for Cadence and Amapa.

Cadence holds a 35.9% equity stake in the Amapá project, backed by a total investment of around $15.5 million as of the end of December. Amapa was once operated by Anglo American.

Initial activities at Azteca will include structural steel repairs, removal of motors and pumps for off-site refurbishment, and procurement of long-lead items needed for recommissioning.

These are notable developments for the miner, as these preparatory works fall within the scope permitted ahead of the Installation Licence, which remains subject to three outstanding regulatory requirements: archaeological clearance from the federal heritage body IPHAN, water abstraction permitting, and tailings-related approvals from the state environmental authority, SEMA/AP.

“Completion of the detailed engineering studies marks an important step in moving Azteca towards refurbishment and recommissioning. The work programme is now supported by an active procurement and mobilisation package, with procurement requests already launched for critical refurbishment items and the contractor team prepared for mobilisation,” said Kiran Morzaria, Chief Executive Officer of Cadence Minerals.

“This is important because it moves Azteca beyond engineering readiness and into practical execution planning, while adding flexibility to the critical path as the remaining Installation Licence workstreams continue to progress. Subject to permitting and execution, Azteca remains central to our phased redevelopment strategy at Amapá, with commissioning targeted by the end of June.”

Thruvision has won a $0.6 million (£0.4 million) contract to supply five of its 81-Series walk-through screening systems to Orlando International Airport, with delivery expected by the end of this month.

The systems, ordered by the Greater Orlando Aviation Authority, will be used for aviation worker screening and feature a new battery-powered base designed for mobile deployment. The deal also includes two years of enhanced support.

It marks the latest in a string of US airport wins for the AIM-listed security technology firm, following a similar contract at Seattle-Tacoma International Airport announced in December. Orlando takes the total number of US airports using Thruvision’s kit to five.

Kevin Gramer, Senior Vice President, Thruvision Americas, commented: “This order reinforces our growing position in the U.S. aviation market. Airports need worker screening solutions that are mobile, compliant, and affordable-without compromising security or throughput. Thruvision systems are designed to give operators that flexibility, helping them strengthen employee screening while keeping operations moving efficiently.”

Thruvision’s technology is now deployed across airports and critical infrastructure sites globally, and the recent run of US orders points to broadening adoption in what remains a significant growth market for the company.

The FTSE 100 was on the back foot again on Thursday after oil prices breached the $100 mark in Asian trading overnight.

Despite the IEA ordering the release of 400 million barrels of oil to help bring prices down, traders couldn’t ignore the risk that the Strait of Hormuz would remain closed for an extended period, and oil prices rose on Thursday.

Some analysts are predicting oil could rise above $160 if the Strait of Hormuz remains closed for the next few months.

Brent Crude oil briefly rose past $100 in Asian trading, but the rally faded as the European session got underway, trading at $98.10 at the time of writing.

London’s leading index was down 0.2% at the time of writing, off the worst levels of the session.

“Once again the FTSE 100 was protected from the worst of the falls on Thursday as its higher exposure to the energy sector helped support the UK stock index,” said AJ Bell investment director Russ Mould.

“Nonetheless, UK stocks were still in the red as investors reacted to ongoing disruption to energy markets from the Middle East conflict. Oil prices surged through the $100 per barrel mark for the second time this week.

“Defence and defensive stocks were in demand as investors looked for places to hunker down and ride out the current turbulence.”

BAE Systems was the top riser, gaining 3%, as investors rotated into the defence sector as tensions persisted.

The FTSE 100’s cohort of interest rate-sensitive and oil-exposed shares was among the fallers again on Thursday.

Housebuilders continue to be collateral damage during the Middle East conflict as the risk of an interest rate hike to curb inflation weighs on the sector. After surging higher on Tuesday on the back of upbeat results, Persimmon shares were back near their lowest levels since the beginning of the conflict, down another 3% on Thursday.

Banks were under pressure in risk-off trade. Barclays and Standard Chartered fell around 2%.

Easyjet and IAG, facing rising fuel costs and falling booking rates due to the conflict, were down 3% and 1.4%, respectively.

HSBC was the FTSE 100’s top faller after shares in the banking giant lost the right to its upcoming dividend payment.