London pre-open: Stocks seen up as oil prices rise

London stocks looked set for a positive open on Monday as oil prices rose due to ongoing tensions in the Middle East.

The FTSE 100 was called to open 26 points higher at 7,625.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "As risk-off sentiment has been spreading, investors have been seeking more defensive positions amid fears of conflict escalating in the Middle East.

"The FTSE 100 looks set to benefit from higher energy prices with oil and gas prices dipping back but remaining at elevated levels, having jumped sharply over supply concerns. Investors are braced for volatility ahead amid fears that Hezbollah militants could attack Israel over its operations in Gaza as forces ready for invasion.

"US Secretary of State Antony Blinken has been on a whistle stop tour of countries around the Middle East, stressing that all leaders want to see the conflict contained, but there is clearly still concern about the risks of contagion. Although gold prices have dipped back a little, they remain a near month-long highs demonstrating the desire for safe haven assets. The Israeli Prime Minister’s vow to demolish Hamas is also helping keep the dollar strong, as investors desert riskier positions."

In UK corporate news, pharma giant GSK announced that European experts recommended the approval of its Jerperli drug for the treatment of a specific type of endometrial cancer - paving the way for marketing authorisation by the continent's regulatory body.

The Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a "positive opinion recommending approval" of Jerperli, otherwise known as dostarlimab, which when used alongside chemotherapy can be used for patients with mismatch repair deficient/microsatellite instability-high primary advanced or recurrent endometrial cancer and who are candidates for systemic therapy.

Elsewhere, Mike Ashely’s Frasers Group upped its stake in fast fashion retailer Boohoo to 15.1% from 13.4%.

Last week, the company - which owns Sports Direct, House of Fraser and Flannels, among others - increased the stake from 9.1%.