FTSE indexes experienced a slight decline on Tuesday amid rising tensions between the U.S. and Iran. The downturn in financial and travel stocks overshadowed the gains in energy shares, following BP’s statement that it had profited from the increase in oil prices earlier this year.

The blue-chip FTSE 100 index fell 0.3% to 10,461.14 points by 1024, while the midcap FTSE 250 slipped 0.7%.

• The U.S. executed strikes against Iran for a third consecutive night, while President Donald Trump declared a blockade of Iranian shipping and imposed a 20% fee on cargo passing through the Strait of Hormuz, resulting in a 3% increase in Brent crude prices to approximately $85 a barrel.
• Travel and leisure stocks experienced sectoral losses, declining by 2.4%, with InterContinental Hotels Group falling by 3.7%, positioning it at the bottom of the FTSE 100 index.
• Banks weighed on the index as investors awaited earnings from major U.S. banks later in the day.
• On the flip side, energy stocks led sectoral gains, up 1.8%, helped by a 2.3% rise in BP after the company said strong oil trading and higher refining margins would support second-quarter earnings.
• Industrial metals miners experienced a notable uptick, with Atalaya Mining Copper, Glencore, and Rio Tinto each rising between 1.6% and 3.5%.
• Investors are closely monitoring the forthcoming U.S. inflation report and the remarks from Federal Reserve Chair Kevin Warsh, which may provide valuable insights into the condition of the world’s largest economy.
• Among individual stocks, Ashmore fell 1.8% after the British asset manager reported quarterly net inflows ahead of expectations, with investors continuing to allocate capital to higher-yielding emerging market assets despite geopolitical uncertainty.
• Debenhams Group rose 3.1% after the online retailer reported that positive trading momentum persisted through June and July, bolstered by improving sales margins and a reduction in customer returns as its turnaround strategy gained traction.