The FTSE 100 was off to a sluggish start on Tuesday after EU leaders have hashed out a plan to block more than two-thirds of Russian oil imports.
The capital’s premier FTSE 100 index was up just 0.2 per cent while the brent crude price rose again, at $124 a barrel.
“Given Russia currently supplies 27 per cent of the EU’s imported oil and 40 per cent of its gas, the FTSE’s tepidness is reflecting anxiety over supply,”Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said.
“The UK is in a better position than some European countries when it comes to reliance on Russia for energy supply, but this doesn’t mean supply concerns will be completely glossed over. The move is likely to create a permanent hike in EU oil prices, and the cost of sourcing is going to rise,” she added.
Consumer goods giant Unilever was the biggest riser on the FTSE 100, with shares booming more than seven per cent.
It comes after notorious activist investor Nelson Peltz has been appointed to the board of Unilever after building a stake through his firm Trian Fund Management earlier this year.
Harbour, BP and Shell also saw share price boosts of around one per cent on Tuesday morning, as Brent hit its highest price since early March.
Budget goods retailer B&M saw the sharpest share price drop, with shares down around eight per cent, after it warned its earnings could be impacted by trading uncertainties.
British Airways owner International Airlines Group also performed poorly, with shares down two per cent.