UK and European equities traded with a firmer tone, supported by selective buying in cyclicals and financials, although sentiment remained constrained by the renewed rise in crude prices and the continuing uncertainty around the Strait of Hormuz. London was modestly positive in midday trading, while Frankfurt and Paris also advanced, as investors balanced resilient corporate earnings expectations against the risk that higher energy costs could keep inflation pressures elevated for longer.

US markets opened on a mixed footing, with investors reluctant to add significant risk ahead of a busy week for major technology earnings, central-bank decisions and key macroeconomic releases. The broader market backdrop remains constructive after a strong recent advance in the S&P, but momentum was tempered by rising oil prices, stalled US-Iran talks and caution ahead of results from several of the largest technology groups.

Asia-Pacific trading was mixed, with Japan and South Korea outperforming as demand for technology and artificial-intelligence-related shares continued to underpin regional risk appetite. Hong Kong was softer, mainland China edged higher, Australia slipped, and Taiwan rallied, leaving the region divided between enthusiasm for semiconductor and AI exposure and caution over energy-market disruption and domestic policy uncertainty.

Oil prices strengthened as the market continued to price in disruption risks linked to the Strait of Hormuz and the lack of progress in US-Iran negotiations. Supply-security concerns remained the dominant driver, with Brent moving back toward psychologically important levels after shipping disruptions and diplomatic deadlock reinforced fears of a tighter physical market.

Gold softened despite the geopolitical backdrop, as the stronger dollar and concerns that higher energy prices could keep interest rates elevated reduced the appeal of the non-yielding metal. The move suggests that, for the session, inflation and rate expectations outweighed safe-haven demand, even as investors remained alert to any further escalation in the Middle East.

Shell was in focus after announcing an agreement to acquire Canadian energy company ARC Resources, a deal intended to deepen its exposure to the Montney resource base and reinforce long-term upstream production. The transaction was viewed as strategically significant for Shell’s North American portfolio, particularly against a backdrop of elevated energy prices and renewed investor focus on reserve depth and cash-flow resilience.

AstraZeneca also drew attention after its Saphnelo Pen received US regulatory approval for self-administration in adults with systemic lupus erythematosus who are receiving standard therapy. The approval broadens the treatment’s commercial positioning by adding a more convenient delivery format, although the shares were little changed as investors weighed the news against broader weakness in the pharmaceuticals and biotechnology segment.