FTSE 100 Advances as Oil Prices Ease Amid Middle East Tensions

London markets prepared for further gains on October 12, 2026, as the FTSE 100 was expected to open higher after oil prices eased despite escalating Middle East tensions, with investors watching energy risks and global inflation pressures.

According to Share Talk, the blue-chip index was expected to rise about 29 points, or 0.3%, to 10,580 after closing Friday 1.06% higher at 10,552.05 and gaining around 0.9% over the week.

Brent crude fell to around $103.60 a barrel in early European trading after previously moving above $105, according to Share Talk. Traders appeared cautious about adding a larger geopolitical premium without evidence of major disruptions to production or shipping.

Share Talk reported that attacks on Riyadh’s King Khalid International Airport continued over the weekend. A Houthi strike on Saturday killed 13 people and wounded more than 300, while another attack on Sunday killed one person and injured 11, according to Saudi figures cited by the outlet.

The US 10-year Treasury yield moved above 5.3% last week, while the 30-year yield climbed above 5.7%, according to Share Talk. The increase added pressure to equity valuations and expectations for future interest rates.

US stocks ended Friday higher, with the Dow gaining 0.8% and the S&P 500 and Nasdaq each rising 0.6% as bond yields temporarily eased, according to Share Talk. US bond markets were closed Monday for Columbus Day while equities continued trading.

Asian markets showed mixed movements on Monday, with the Shanghai Composite down 0.2%, Hong Kong’s Hang Seng up 0.2% and Australia’s S&P/ASX 200 gaining 0.8%, according to Share Talk. Japanese markets were closed.

European trade relations with China remained under review after talks between EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao made progress on several disputes, according to Share Talk. Further negotiations are expected.

Sterling traded near $1.324 and gold was close to $4,186 an ounce, according to Share Talk. Investors were also awaiting remarks from Bank of England Deputy Governor Sarah Breeden and Monetary Policy Committee member Catherine Mann.

The UK calendar included Breeden discussing digital assets and the G20 presidency, while Mann was scheduled to join a panel on inflation, energy and exchange rates, according to the Bank of England and Share Talk.

US inflation data later in the week was expected to be a key market focus after recent Treasury yield increases, according to Share Talk.