FTSE 100 movers: BP, Shell gush higher; Fresnillo loses its shine

(Sharecast News) - London's FTSE 100 was down 0.5% at 10,310.21 in afternoon trade on Thursday.

BP and Shell gushed higher as oil prices surged after Donald Trump said in his first national address since the start of the war that the US would hit Iran "extremely hard" in the next two to three weeks.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said traders are beginning to price in the growing risk of disruption to energy infrastructure across the Gulf, amid lingering uncertainty around key shipping routes like the Strait of Hormuz.

"Comments suggesting military operations in the region could extend for several more weeks have dampened hopes of a near-term resolution, adding a fresh geopolitical risk premium to oil prices," he said. "That's come despite a sizeable 5.5 million barrel build in US crude inventories last week, which would typically have weighed on prices but has instead been brushed aside in the current environment."

Defensives British American Tobacco, Imperial Brands, British Gas owner Centrica, National Grid and United Utilities were all on the front foot.

Precious metals miner Fresnillo lost its shine as gold prices retreated. Fadi Al Kurdi, founder chief executive officer of FFA Kings, said the surge in oil prices has reinforced inflation concerns, supporting both the dollar and yields and reducing the appeal of non-yielding assets such as gold.

Others miners were also under the cosh, with Antofagasta and Anglo American both lower.

Housebuilder Barratt Redrow and engineer IMI fell as they traded without entitlement to the dividend.

FTSE 100 - Risers

BP (BP.) 602.20p 4.74%

Shell (SHEL) 3,548.50p 3.11%

Centrica (CNA) 215.80p 1.79%

British American Tobacco (BATS) 4,377.00p 1.53%

Coca-Cola Europacific Partners (DI) (CCEP) 6,980.00p 1.45%

Imperial Brands (IMB) 3,071.00p 1.32%

Tesco (TSCO) 479.20p 1.20%

National Grid (NG.) 1,309.50p 1.16%

United Utilities Group (UU.) 1,355.50p 1.08%

BT Group (BT.A) 213.40p 0.90%

FTSE 100 - Fallers

Fresnillo (FRES) 3,342.00p -4.63%

Antofagasta (ANTO) 3,322.00p -4.54%

Barratt Redrow (BTRW) 251.30p -4.41%

Anglo American (AAL) 3,204.00p -4.16%

Compass Group 11 (CPG) 28.35p -3.86%

IMI (IMI) 2,538.00p -3.35%

Standard Chartered (STAN) 1,565.00p -3.19%

St James's Place (STJ) 1,201.50p -3.15%

Spirax Group (SPX) 6,750.00p -3.08%

Rolls-Royce Holdings (RR.) 1,168.00p -3.07%