The FTSE 100 opened 1.1% or 118.05 points down to 10,662.06, as investors reacted to escalating geopolitical tensions and a sharp rise in energy prices. While oil majors provided some support to the index, weakness across banks, miners, and defensive stocks weighed heavily on sentiment.
Brent crude climbed above $81 per barrel, rising around 4% and reaching levels last seen in July 2024.
The surge follows mounting concerns over disruptions in the Strait of Hormuz and attacks that are affecting energy infrastructure in the Gulf region.
Coal prices also jumped 8%, while European wholesale gas prices soared 52% after QatarEnergy halted LNG production due to attacks on its facilities.
Against this backdrop, energy majors posted gains. Shell rose 0.32% to £3,142 after adding £10 during the session, while BP advanced 1.20% to £493.70. BP touched £496.5 as oil prices extended their rally.
Barclays dropped 3% to £424.95, Lloyds Banking Group fell 2% to £98, and HSBC retreated by £29.6 to £1,302.4.
The sector came under pressure as rising oil prices raised concerns around inflation and dampened risk appetite.
Mining shares also weakened amid overall market uncertainty. Antofagasta slid 3.44% to £4,015, while Fresnillo fell 3.20% to £3,988.
Meanwhile, Intertek tumbled 9.11% to £4,310. AstraZeneca also edged lower, slipping 0.87% to £15,120.
Media group Reach, which owns titles including the Mirror and Express, reported a 3.7% drop in revenue to £518.4 million.
However, operating profit rose 2.4% to £104.7 million as the company accelerated cost reductions and expanded its use of AI in newsrooms.
Aberdeen delivered stronger results, with pre-tax profit surging 76% to £442 million and total assets under management and administration rising 9% to £556 billion.
Its Interactive Investor division saw assets increase to £97.5 billion, supported by £7.3 billion in net inflows.
Greggs reported a 9% decline in pre-tax profit to £171.9 million despite a 7% increase in total sales. Growth at company-managed stores slowed to 1.6% in early 2026, significantly lower than last year.
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Shop price inflation eased in February, but consumers continue paying 3.5% more on food compared to last year, according to the British Retail Consortium (BRC) and NIQ.
Overall shop inflation fell slightly to 1.1% from January’s 1.5%, in line with the three-month average of 1.1%.
Food inflation fell slightly to 3.5% from 3.9%, while fresh food prices remained 4.3% higher than last February, a slight drop from January’s 4.4%.
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