The UK's FTSE 100 index edged higher on Tuesday, as Shell-led gains in energy stocks offset weakness in precious metals miners.
The blue-chip FTSE 100 index CURRENCYCOM:UK100 rose 0.2% to 10,673.85 points by 1057 GMT, while the midcap FTSE 250 FTSE:MCX slipped 0.2%.
Energy stocks FTSE:NMX601010 rose 1.9%, with Shell LSE:SHEL up 2.4% after the oil major raised its second-quarter gas production forecast and flagged significantly stronger gas trading compared to the previous quarter, while BP LSE:BP. added 0.9%.
Oil prices also rose after reports of attacks on vessels near the Strait of Hormuz revived fears of disruptions to shipping through the critical energy transit route.
Consumer-focused stocks were also among the top performers on the FTSE 100, with Burberry LSE:BRBY, Diageo LSE:DGE and Unilever LSE:ULVR rising 3% to 3.7% each.
On the flip side, precious metals miners FTSE:NMX551030 fell 1.9% as gold prices slipped, pressured by a stronger U.S. dollar.
On the geopolitical front, talks to reach a final deal between Tehran and Washington won't start if U.S. threats continue, Iran's foreign minister said, following U.S. President Donald Trump's threat to "finish the job" if a deal is not made.
NATO leaders began unveiling arms deals worth tens of billions of dollars in Turkey on Tuesday, driving home the message that they are heeding U.S. calls to spend more to defend Europe before a summit with President Donald Trump.
Back home, British house prices rose 0.2% in June, their first monthly increase since February, though Lloyds said the outlook remained clouded by economic uncertainty.