March 30 (Reuters) - London's FTSE 100 advanced on Monday, lifted by gains in mining and energy stocks tracking higher commodity prices, though sentiment remained shaky as the Middle East war entered
UK's FTSE 100 climbs on boost from oil stocks, miners amid Middle East conflict
Market Performance and Sector Highlights
March 30 (Reuters) - London's FTSE 100 closed more than 1% higher on Monday, buoyed by mining and energy stocks as commodity prices continued to rise on concerns about supply shock due to the ongoing conflict in the Middle East.
The blue-chip FTSE 100 index closed up 1.6%, while the midcap FTSE 250 fell 0.05%. Both indexes however, were on track for firm monthly losses.
Impact of Middle East Conflict
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Geopolitical Tensions and Energy Markets
The Middle East conflict showed no sign of easing as President Donald Trump warned that Iran's energy plants and oil wells would be obliterated if it did not open the Strait of Hormuz, after Tehran described U.S. peace proposals as "unrealistic" and fired waves of missiles at Israel.
Sector Movements
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Mining Sector
Rio Tinto rose 3.4% after the mining giant said operations at three of its four Pilbara iron ore port terminals have resumed after Tropical Cyclone Narelle swept through Western Australia's Pilbara region. Industrial metal miners rose 2.2%.
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Energy Sector
Energy stocks climbed 2.3% to a record high as crude oil prices remained elevated, with Brent crude headed for a record monthly rise. [O/R]
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Defensive Stocks
Utilities Sub-Index
Investors turned to defensive stocks, pushing up the utilities sub-index 3.1% as they sought stability.
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Travel and Leisure Sector
Impact of Rising Fuel Costs
The travel and leisure sub-index fell 0.1%, on pace for double-digit monthly losses, as the Iran war raised fuel-cost fears and disrupted key flight routes, threatening profits.
Economic and Policy Updates
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Government and Trade Policy
Britain's finance minister Rachel Reeves will urge G7 counterparts to avoid unilateral measures such as new trade barriers during the Iran war, warning they could worsen energy insecurity and disrupt global supply chains.
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Banking and Credit Data
British mortgage approvals rose by more than expected last month and consumer credit grew at a faster pace than in January, Bank of England data showed on Monday, ahead of a potential hit from higher borrowing costs caused by the Iran war.
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Upcoming Economic Reports
A domestic fourth-quarter GDP rating and U.S. jobs report for March will be released later this week.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shinjini Ganguli, Alexandra Hudson)
