FTSE 100 near record highs, but $90 oil could change the picture fast

UK equities were broadly cautious as the FTSE 100 slipped from near-record territory while Brent crude approached $90 a barrel amid Middle East tensions and shipping attacks. The article argues higher oil is a double-edged sword for the FTSE 100: it supports energy-heavy names and lifts commodity-linked earnings, but also raises inflation fears and squeezes margins for transport, retail and consumer companies. Broader European markets held up better, with the STOXX 600 near records as energy stocks outperformed autos. Investors are now focused on the US July CPI print and Thursday’s UK GDP data, which could influence rate expectations and determine whether elevated oil prices translate into higher yields and renewed pressure on global equities.