Shares round-up: IAG, BP, oil forecast, Raspberry Pi

Photo: Thomas Fuller/SOPA Images/LightRocket via Getty Images.

The recovery of stocks including Reckitt Benckiser Group (LSE:RKT) and International Consolidated Airlines Group SA (LSE:IAG) was today shaken by a resumption of Middle East hostilities as the price of Brent crude oil jumped 5%.

President Donald Trump’s comments that the US-Iran ceasefire had ended in the wake of last night’s exchange of strikes meant the FTSE 100 index lost just over 100 points to 10,564.

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On Wall Street, the Dow Jones Industrial Average opened 1% lower, while the S&P 500 index gave up another 0.5% after yesterday’s shaky session for AI-related stocks.

The FTSE 100 reverse included big falls for Anglo American (LSE:AAL), Antofagasta (LSE:ANTO) and Rio Tinto  Ordinary Shares (LSE:RIO) as the price of copper and other key metals slipped on the back of demand fears and a stronger dollar.

British Airways owner IAG eased 12.3p to 465.3p, having rallied 18% over the last 30 days amid hopes that a reopening of the Strait of Hormuz will lower its eventual 2026 jet fuel bill.

Reckitt Benckiser and Unilever (LSE:ULVR) also surrendered some of their 10%-plus recovery of the past month as investors revisited the case for price rises to counter shipping and other costs.

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The return of inflationary pressures as Brent crude surged to $78 a barrel weighed on interest-rate sensitive stocks, including builders Persimmon (LSE:PSN) and Barratt Redrow (LSE:BTRW).

Among other fallers, Rolls-Royce Holdings (LSE:RR.) and BAE Systems (LSE:BA.) lost a slice of their recent gains as a third of stocks in the FTSE 100 gave up 2% or more.

BP (LSE:BP.) and Shell (LSE:SHEL) led a shortened risers board, having recently returned to pre-war levels after Brent fell from $110 a barrel to near $70 in the space of just over a month.

UBS Global Wealth Management sees $85 by the end of this year as it believes the full return of shipping confidence and the recovery of energy industry production will take time.

This is based on its continued view that the path towards a lasting peace deal is likely to be bumpy, with periodic flare-ups in tensions set to mean bouts of market volatility.

The bank adds that robust corporate earnings, supported by a resilient economic backdrop, should continue to support global equities.

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The FTSE 250 index declined in line with its blue-chip counterpart, with cruise ship operator Saga (LSE:SAGA) among the fallers as investors used today’s events as an opportunity to lock in profits after a doubling of the company’s value since December.

Wickes Group (LSE:WIX) and Travis Perkins (LSE:TPK) also lost ground during a tough session for consumer-focused stocks.

Raspberry Pi Holdings (LSE:RPI) retreated 24p to 839p, even though City firm Peel Hunt today lifted its price target to 1,085p from the 460p it held previously.

The new estimate is in line with last month’s record price after a one-day 30% surge on the back of the company’s upgraded City guidance.

Interest in the shares has been boosted by speculation about AI enthusiasts using low-cost Raspberry Pi boards to run the agent OpenClaw as an autonomous digital assistant.