FTSE 100 Rallies as Middle East Conflict Spurs Commodity Prices

The FTSE 100 surged over 1% on Monday, driven by mining and energy stocks, as commodity prices rose due to supply fears linked to the Middle East conflict. While the FTSE 100 gained 1.6%, the FTSE 250 experienced a slight 0.05% drop, yet both indices faced potential monthly losses.

Amid ongoing Middle East tensions, President Donald Trump threatened Iran, intensifying global energy concerns. Meanwhile, Rio Tinto shares climbed 3.4% following the resumption of operations in Cyclone-hit Pilbara. Industrial metal miners rose 2.2%, with energy stocks seeing a 2.3% boost as Brent crude prices remained strong.

Investors sought stability in defensive stocks, pushing utilities up 3.1%. Conversely, the travel and leisure sector showed vulnerability, edging down 0.1% amid fuel-cost concerns. Finance Minister Rachel Reeves cautioned against new trade barriers at the G7, as unresolved tensions could impact energy security and disrupt supply chains.