Uncertainty over the reopening of the Strait of Hormuz today kept the oil price close to $100 a barrel.
The FTSE 100 index also traded in a narrow range after this week’s Middle East ceasefire boosted valuations on Wednesday.
Meanwhile, figures due later are set to show a jump in the annual rate of US inflation after gasoline prices surged in March.
FTSE 100 Live Friday
- Record North Sea oil price
- US inflation set to jump
- AO World profits boost
Market update: FTSE 100 set for weekly rise, oil price near $100
09:43 , Graeme EvansCautious trading ahead of Middle East peace talks today kept the FTSE 100 index near its opening mark and the price of Brent Crude close to $100 a barrel.
London’s top flight rose 12.80 points to 10,616.28, meaning a weekly rise of about 2% after Tuesday’s ceasefire agreement triggered a relief rally for global markets.
However, oil prices have stayed elevated after President Trump said Iran was “doing a very poor job” allowing tankers to pass through the Strait of Hormuz.
Only a few vessels have passed through the all-important waterway, a vital artery for the world’s oil over which Iran has a stranglehold.
Brent Crude rose 1.8% to $97.68 a barrel in today’s dealings, having been $110 earlier in the week and near $90 in the hours after the truce was announced.
Wall Street traders are braced for an inflation shock later, with the March consumer price index reading set to show a jump in the annual rate from 2.4% to 3.3%.
Bond yields edged higher this morning amid fears that a prolonged period of high energy prices will force policymakers to hike interest rates.
The uncertainty ahead of diplomatic talks in Pakistan this weekend was reflected in a lacklustre session across European markets, with benchmarks in Paris and Frankfurt also close to their opening marks.
In London, Burberry shares rose 3% or 33p to 1166.4p and Rightmove improved 2% or 7.3p to 440.8p. Food services group Compass dropped 3% and Rolls-Royce eased 13.6p to 1266.2p.
In the FTSE 250 index, AO World rose 5% or 4.3p to 93.1p after the online electricals retailer signalled a 15% rise in annual profits to a record near £50 million.
North Sea oil price sets record high
09:33 , Graeme EvansNorth Sea oil prices have risen to a new record high as traders rush to secure supplies.
It came as US President Donald Trump accused Iran of not abiding by a ceasefire agreement to immediately open the Strait of Hormuz.
Forties Blend, the marker used for cargoes of oil produced off the coast of the UK, rose to almost $147 (£109.50) a barrel late on Thursday.
The price of oil from the North Sea has soared since the start of the conflict in the Middle East and is up from around $60 a barrel at the start of the year.
FTSE 100 makes steady start, oil price higher
08:07 , Graeme EvansThe FTSE 100 index has dipped 6.41 points to 10,597.07 after the price of oil rose by 1.5% to more than $97 a barrel.
The steady start follows a positive session for Asia markets, including a rise of 1.8% for the tech-focused Nikkei 225.
Wall Street futures are pointing to a mixed session for US benchmarks when trading resumes later today.
The FTSE 100 leaders board included Burberry, which lifted 2% or 20.4p to 1153.8p, and B&Q owner Kingfisher following an advance of 4.5p to 304.6p.
Food services firm Compass dropped 3% at the bottom of the FTSE 100, while Rolls-Royce faded 8p to 1271.8p and BP weakened 5.9p to 574.6p.
AO World backs top-end profit guidance
08:01 , Graeme EvansAO World today said full-year profits will be about 15% higher at the top end of its recently upgraded guidance range of between £45 million and £50 million.
The online electricals retailer, which is due to report results on 17 June, achieved revenues growth of 11% in the year to 31 March.
John Roberts, AO's founder and chief executive, said: "The numbers speak for themselves again and I am delighted to keep doing our talking on the pitch.”
He added that AO will soon become the first company globally to reach one million Trustpilot reviews with a 4.9 rating from customers.
Hedging arrangements put in place before the Middle East war cover about 80% of the current year’s forecast fuel usage and 100% of electricity usage.
Shopper footfall below expectations for March - BRC
07:36 , Graeme EvansShopper footfall failed to meet expectations in March despite Easter and the school holidays falling earlier than usual.
Total UK footfall was up by 2.4% year on year, according to the British Retail Consortium (BRC) and Sensormatic.
High street footfall increased by 2% in March, up from a drop of 5.4% in February, while shopping centre visits were up by 2.6%, an improvement on the 5.5% fall seen the month before.
BRC chief executive Helen Dickinson said: “Shopping centres outperformed other locations and cities like Manchester continued to do well but overall growth fell short of expectations.”
US inflation rate set to surge
07:30 , Graeme EvansUS inflation figures for March are due for release later, with Wall Street economists braced for a big jump in the annual rate from 2.4% to about 3.3%.
The highest reading in almost two years has been driven by a surge in gasoline prices, which will mean a monthly rate of 0.9% - the biggest number since June 2022.
The core inflation rate, which excludes energy and food prices, is set to show a monthly rise of 0.3% and annual rate of 2.7%.
Oil price edges higher, FTSE 100 set for positive start
07:04 , Graeme EvansUncertainty over the reopening of the Strait of Hormuz today kept the price of Brent Crude elevated at $96.67 a barrel, having edged up in Asia trading.
The FTSE 100 is seen opening about 0.2% higher after registering a decline of 5.40 points at 10,603.48 in yesterday’s session. The FTSE 250 reversed 1%.
The top flight’s expected improvement follows last night’s gains of 0.6% for the Dow Jones Industrial Average and the S&P 500 index.
Asia markets also traded higher, with the Nikkei 225 index up by 1.9% shortly before the market close.
The price of gold, meanwhile, is broadly unchanged at $4766 an ounce.
