FTSE 100 on Track for Best Month Since Iran Attacks 2026

The FTSE 100 is on track for its best month since the first US attacks on Iran five months ago, despite a slight dip in late trading. The index reached a record high earlier today and is set to close the month up about 3.5% at around 10,840 points, a remarkable recovery from the March turmoil.

FTSE 100 Performance and Market Context

The FTSE 100's monthly gain of 3.5% stands in stark contrast to the sharp selloff triggered by the Iran conflict. After hitting a year low below 9,700 points, the index has rebounded strongly. The broader European Stoxx 600 is also up 1.2% this month, recovering from an 8% drop in March.

Investor sentiment has improved as geopolitical tensions eased, but uncertainty remains. The index was down 0.5% after 3pm BST, reflecting some profit-taking. However, the overall monthly performance is a positive sign for UK equities.

Key Drivers Behind the Rally

Several factors have contributed to the FTSE 100's strong month. Stabilizing oil prices, better-than-expected corporate earnings, and hopes of central bank policy easing have all supported investor confidence. Additionally, a weaker pound has boosted multinational companies' overseas earnings.

Despite the positive momentum, analysts caution that the market remains vulnerable to geopolitical shocks. The Iran situation is still fluid, and any escalation could reverse gains quickly.

Business News Highlights

In other business news, BP has put its North Sea oil and gas business up for sale, ending six decades of production in the basin. Petrol prices have hit a new Iran War high at UK forecourts, adding pressure on households. Morrisons reported widening losses to £926m and cut nearly 5,000 jobs, while Sainsbury's agreed to sell Argos for £120m to focus on core food business.

Renewable energy saw a bright spot: Great Britain recorded more new solar installations in the first half of this year than any six-month period since 2011. Meanwhile, UK house price growth slowed in July due to economic uncertainty and cautious buyers.

Comparison: FTSE 100 vs Stoxx 600

Wall Street Opens Higher

US markets also ended the month on a positive note. The S&P 500 rose 0.54% to 7,477.59, the NASDAQ gained 0.92% to 25,353.51, and the Dow Jones added 225.88 points. This global optimism further supports the FTSE 100's monthly performance.

Key Takeaways

• FTSE 100 on track for best month since Iran attacks, up ~3.5%.
• Index hit record high before slight pullback in late trading.
• BP to sell North Sea assets; petrol prices at Iran War high.
• Morrisons losses widen; Sainsbury's sells Argos.
• Solar installations surge; UK house prices soften.

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