UK and European equities entered the end of the week in a more cautious mood after the sharp relief rally that followed the US-Iran ceasefire announcement earlier in the week. London was comparatively steady, with the FTSE held back by its large energy weighting even as crude recovered, while broader continental markets continued to balance easing immediate war fears against fresh concern that the ceasefire remains fragile and that shipping through the Strait of Hormuz is still not operating normally.

US equities retained a firmer undertone into the latest session, extending gains as investors took comfort from signs of de-escalation in the Middle East even though oil moved higher again. Wall Street’s advance was supported by the view that a contained conflict could prevent a deeper energy shock, while renewed diplomatic signals in the region also helped sentiment.

Asia-Pacific markets were mixed after the powerful rebound seen earlier in the week, as investors reassessed whether the ceasefire could deliver a durable reopening of regional energy flows. The strongest initial relief move has given way to a more discerning tone, with markets now caught between better global risk appetite and renewed concern over oil supply disruption.

Oil remains the market’s central macro signal. After collapsing on the ceasefire headline earlier in the week, crude rebounded sharply as doubts resurfaced over the durability of the truce and as commentary from Abu Dhabi indicated that the Strait of Hormuz is still effectively not open in a normal sense. The result is a market that is no longer pricing an immediate worst case supply shock but is still demanding a significant geopolitical premium.

Gold has remained supported by the broader backdrop of geopolitical uncertainty, though the price action has been less dramatic than in oil. The metal is still benefiting from its safe-haven status, but that support is being moderated by shifting expectations for central banks as markets weigh whether the energy spike proves temporary or more persistent.

In UK equities, defensive healthcare and high-quality industrial names continued to attract attention. GSK outperformed on the latest session, reflecting the market’s preference for earnings visibility during periods of macro uncertainty, while Rolls-Royce remained notable after a strong move earlier in the week, highlighting that investors are still prepared to back operational momentum where company-specific conviction is strong. Taken together, the pattern in London suggests a market favouring a barbell of defensives and proven cyclicals rather than broad-based risk exposure.