The FTSE 100 ticked up on Monday morning as oil prices jumped after rebels overthrew the regime of Syrian President Bashar al-Assad over the week.
Britain’s blue-chip index gained 0.28 per cent to 8,331.88, while the mid-cap FTSE 250, which is more closely aligned with the health of the UK economy, traded mostly flat at 21,047.56.
Brent crude rose 1.04 per cent, approaching $72 a barrel, after events in Syria over the weekend stoked further tensions in the Middle East.
It comes after prices fell last week when OPEC+ delayed the start of oil output rises by three months until April due to weak demand.
“Weak demand from China and the postponement of the plan by OPEC+ nations to postpone production increases is keeping a lid on prices to some extent,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said on Monday.
“However, the speed at which rebel forces took over in Syria and the unpredictability of what will come next has raised fresh supply concerns in a region already wracked by conflict.”
Assad fled the country following a lightning advance from Syrian rebels, who announced on state television on Sunday that they had captured the capital of Damascus and ousted the president after 24 years in power.
The Kremlin said Russia has given political asylum to Assad.
Shares in oil and gas giants BP and Shell rose 1.1 and 2 per cent, respectively, boosting the FTSE 100.
“For now, the equity market response is quite muted, suggesting investors are waiting to judge the wider impact of this latest development,” said AJ Bell investment analyst Dan Coatsworth.
Mining stocks were among the biggest risers on the FTSE 100 after China’s top politicians said they would take a “moderately loose” monetary policy and expand fiscal spending in 2025.
Shares in Antofagasta, Rio Tinto, Glencore, Anglo American and Fresnillo gained 4.1, 3.7, 3.6, 3.1 and 2.4 per cent respectively.
The developments also helped other China-exposed stocks, including Prudential, Standard Chartered and Burberry make gains. Investment trust Fidelity China Special Situations topped the FTSE 250, rising 5.1 per cent.