London Stocks Gain on Record Copper Prices as Middle East Tensions Weigh

London equities advanced on Tuesday, building on earlier gains as a fresh all-time high for copper boosted mining stocks listed in the capital, even as Middle East tensions intensified, with Iran adopting a firmer line and Yemeni Houthi militants escalating assaults on Saudi Arabian energy infrastructure.

Qatar's diplomatic efforts to restart negotiations between Washington and Tehran provided some market relief, while the surge in copper prices to record heights drove gains for London-listed miners.

At 09:07 ET (13:07 GMT), the FTSE 100 had climbed 0.11%, Germany's DAX had turned positive with a 0.15% advance, and France's CAC 40 had risen 0.08%.

The British pound reversed course, trading 0.14% higher against the dollar at 1.3558.

On Tuesday, Iranian President Masoud Pezeshkian adopted a more strident posture, declaring that Tehran would 'persist in this resistance with strength until the aggressors are filled with regret' — a markedly harsher tone than in recent weeks.

Earlier, Iran's acting defense minister warned that Tehran might target US warships that are enforcing its naval blockade, prompting Washington to promise 'decisive action.'

In a countervailing move, Qatar reported that it is coordinating with China and other allies to bring the United States and Iran back to the negotiating table, as Qatari Prime Minister Sheikh Mohammed met with Chinese Foreign Minister Wang Yi in Beijing.

Wang remarked that 'pressure achieved through guns and cannons is not a solution.' Separately, Qatar described restoring traffic through the Strait of Hormuz as a 'paramount' priority.

Early Tuesday, Houthi forces attacked several Saudi energy installations. The Saudi-led coalition subsequently reported approximately 74 people injured, an upward revision from an initial count of 73, while the Gulf Cooperation Council and Kuwait condemned the strikes as a 'dangerous escalation.'

Oil tanker traffic through the strait remains sparse; according to Kpler, the 10-day moving average is now 10 vessels, the lowest figure since May.

The United Kingdom formally implemented its trading prohibition on products originating from Israeli settlements in the occupied West Bank. Foreign Secretary David Miliband described the measure to Parliament as 'the start of a new approach,' and the government simultaneously imposed fresh sanctions on the Hezbollah-affiliated financial institution Al-Qard Al-Hassan.

In separate economic data, the British Retail Consortium reported that UK retail sales growth decelerated to 0.7% on a year-over-year basis in August, down from 3.1% the prior year. This adds to a busy week for data releases that also includes the European Central Bank's policy meeting on Thursday and the U.S. CPI report on Friday. Jefferies' Mohit Kumar commented that the inflation figures might spark a rally in interest-rate products, given the extended positioning in Treasury and German Bund markets.

Copper surged to a fresh record on the London Metal Exchange, exceeding $14,600 per metric ton, driven by tight supply after Chile once again revised its production outlook downward. The rally lifted London's top movers directly: Antofagasta jumped 6% to lead the advance, followed by Anglo American, Weir Group, and Glencore.

Brent crude advanced 0.55% to $97.53 per barrel, while West Texas Intermediate climbed 1.10% to $92.48. Gold futures for December settlement dropped 0.60% to $4,450.45 an ounce, and spot gold hovered nearly flat at $4,405.28.

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