Brent crude futures slipped 2% on the back of resilient Middle Eastern exports and a G7 emergency stockpile release, helping to soothe supply anxieties. Simultaneously, the 10- and 30-year gilt yields pulled back from multi-decade highs, providing breathing room for equities. Despite this, Bank of England policymaker Catherine Mann cautioned that inflation remains deeply embedded in the UK economy, with markets pricing in a 90% probability of a rate hike in November.

Defence stocks bore the brunt of Tuesday's trade, with BAE Systems, Babcock International, and Rolls-Royce sliding between 2% and 4%. The sector's decline followed reports that Whitehall may delay increasing defence spending to 3% of GDP. Elsewhere, Informa shares jumped 3% after the company announced a £2.24 billion acquisition of Clarion and plans to spin off its academic publishing arm. Meanwhile, online retailer ASOS saw its shares tumble 9.6% after confirming a potential data breach, though the firm maintains that payment details and passwords remain secure.