The UK's FTSE 100 closed 0.72% higher on Thursday as the gradual increase in crude flows through the Strait of Hormuz eased pressure on the commodity markets.
"Markets are in a buoyant mood this morning, with Brent crude oil prices finally back at their pre-conflict levels. They've fallen another -1.70% overnight to $72.49/bbl, which is almost exactly in line with their $72.48/bbl level immediately before the US and Israel began their strikes on Iran on February 28... The oil price decline has eased fears about a stagflationary shock and aggressive rate hikes to deal with any inflation," Deutsche Bank Research said.
Meanwhile, Britain's total vehicle manufacturing rose 2.7% year over year to 51,178 units in May, rebounding for the first time in 2026, the Society of Motor Manufacturers and Traders said. Car production climbed 3.2% to 49,249 units after four months of decline, while commercial vehicle output dropped 7.6% to 1,929 units.
"May's growth is welcome, and the priority must be to turn this into a sustained recovery by making the UK more competitive as a place to make and sell vehicles. That means reducing industrial costs, maintaining free and open trade with the EU, and ensuring the ZEV mandate reflects market reality," SMMT Chief Executive Mike Hawes said.
The Confederation of British Industry distributive trade survey's retail sales balance fell to -54% in June from -46% in the previous month, missing the consensus estimate of -41%.
"Retailers reported a gloomy start to the summer, with sales disappointing relative to seasonal norms to the greatest extent in over two years amid depressed consumer sentiment and rising cost pressures," CBI Lead Economist Martin Sartorius said. "Businesses need clarity and stability at a time when confidence remains fragile. As government transitions to a new Prime Minister, the focus must remain on creating the conditions for growth by tackling the cost of doing business."
On the corporate side, budget airline easyJet (EZJ.L) soared 6.51% after its board unanimously rejected a fourth takeover proposal from Castlelake. The alternative investment company offered 6.50 pounds sterling in cash for each easyJet share, including a partial equity alternative.
Moonpig Group (MOON.L), a constituent of the FTSE 250 Index, climbed 3.57% after swinging to an attributable profit of 51.7 million pounds in fiscal 2026, from a loss of 11.1 million pounds a year ago. Berenberg also affirmed its buy rating for the online greeting card and gifting platform, noting the company delivered "another impressive year."