FTSE 100 today: Stocks rise as energy majors defy Hormuz strike fears

On Tuesday, British stocks rose despite growing tensions in Iran and a vessel being damaged in the Strait of Hormuz. The FTSE 100 index increased by 0.16%, outperforming European counterparts, with Germany's DAX falling 0.48% and France's CAC 40 dropping 0.18%. The UK pound weakened by 0.13% to 1.3526 against the dollar. Energy and consumer sectors led the index's gains, with Centrica up 2.2%, BP increasing 2.1%, and Shell gaining 1.5%.

The rise in energy stocks followed a firmer oil market as the UKMTO reported that a vessel had been struck by an unknown projectile while passing through the Hormuz Strait, resulting in engine room damage and one crew member injured. This incident marked a significant escalation in the ongoing tensions. Meanwhile, the number of vessels transiting the Strait of Hormuz reduced to six on Monday, compared to the 10-day average of 11, according to Kpler tracking data released on Tuesday.

The strike came amid deteriorating diplomatic relations, with Iran's senior official warning of a fully offensive military stance should diplomacy fail. Trump had previously threatened military retaliation against Oman if it interfered with U.S. positions in the waterway, and had stated that Iran "should put up the white flag of surrender" and vowed not to extend a 60-day memorandum of understanding on June 17.

UK employment data released on Tuesday showed a decline of 94,000 year-on-year to 30.3 million in July, with payrolls rising by 4.2% to £2,642, with health and social work leading sectoral pay growth.