FTSE 100 today: Stocks rise as oil near $105 supports energy shares

British stocks, led by energy shares, climbed on Thursday as oil prices neared $105 per barrel. The FTSE 100 index increased by 0.07%, while Germany's DAX declined 0.30% and France's CAC 40 dropped 0.24%. The British pound weakened, falling 0.16% to $1.3220, its lowest level since June 26. Simultaneously, U.S. Treasury yields remained near their highest since 2007, despite robust economic data suggesting interest rates may remain high for an extended period.

In Yemen, the Saudi-led coalition intercepted six ballistic missiles launched by Iran-backed Houthis, preventing attacks on Taif and Yanbu. Saudi Civil Defence had initially issued alerts in Mecca, Jeddah, Yanbu, and Taif, but later lifted them. Iran's state media reported that all Iranian flights to the UAE were canceled following the implementation of U.S. aviation sanctions, which also affected airlines in Oman, Azerbaijan, and Georgia.

EU leaders expressed appreciation for Pakistan's mediation efforts in resolving the U.S.-Iran conflict. Iran's Supreme National Security Council spokesperson, Mohsen Rezaei, conveyed a five-day deadline to the U.S. for compliance, including lifting the naval blockade and unfreezing Iranian assets. Iran's President Masoud Pezeshkian, during a UN General Assembly address, reaffirmed Iran's willingness to engage in dialogue and diplomacy, rejecting the use of force.

The two nations held their first in-person talks in months via Qatari intermediaries. Meanwhile, global vessel traffic through the Strait of Hormuz remained significantly below average, with just 10 commodity ships passing through on Wednesday, compared to an average of approximately 17 over the past 10 days, according to preliminary Reuters shipping data.