(Sharecast News) - London stocks had extended losses by midday on Wednesday amid worries about inflation and interest rates, as Brent crude topped $100 a barrel for the first time since 24 July amid escalating tensions between the US and Iran.
The FTSE 100 was down 0.9% at 10,715.58, while Brent crude was up 2.5% at $100.34 a barrel and West Texas Intermediate was 2.1% higher at $94.95 after US military strikes on Iranian oil tankers near Kharg island.
The US Central Command said it had destroyed five Iranian crude oil carriers after the Islamic Revolutionary Guard Corps (IRGC) targeted a US Navy warship with ballistic missiles twice over the past two days.
Dan Coatsworth, head of markets at AJ Bell, said: "Brent crude pushing above $100 a barrel has had a psychological effect on the market, pushing a hypothetical inflation worry gauge to 'serious' status and dragging down financial assets.
"The oil price has now jumped by 28% since early August. This type of ascent could leave businesses and consumers feeling sick at the thought of sharp cost increases and potentially higher borrowing costs if central banks choose to fight inflation with interest rate hikes."
In equity markets, Burberry was hit by a downgrade to 'hold' from 'buy' at HSBC, which said the turnaround has progressed well, but there is not much scope for upwards sales and earnings revisions from here.
Goodwin slumped as it agreed to sell a substantial part of its mechanical engineering division to US private equity firm Cerberus Capital Management for up to £1.1bn.
On the upside, Aberdeen rallied as it appointed Torbjörn Magnusson as chair-designate with immediate effect. He succeeds Douglas Flint, whose departure was announced last year.
BP gushed higher in tandem with oil prices, while utilities Centrica, SSE, Severn Trent and United Utilities were among the top performers on the FTSE 100.
Polymer solutions firm Victrex surged after it lifted its fullyear profit guidance as strong trading momentum continued into the final quarter. The company now expects underlying pre-tax profits of £45m to £47m for FY26, up from previous guidance for £42m to £44m.
Israel-focused oil and gas producer Energean was also trading up despite posting a fall in half-year profit as a result of a 41-day production suspension due to the US-Israeli war on Iran.
Market Movers
FTSE 100 (UKX) 10,715.58 -0.89%
FTSE 250 (MCX) 24,181.38 -0.69%
techMARK (TASX) 5,989.39 -0.58%
FTSE 100 - Risers
Computacenter (CCC) 5,255.00p 1.74%
Abrdn (ABDN) 251.60p 1.70%
BP (BP.) 558.00p 1.45%
Centrica (CNA) 154.70p 1.44%
SSE (SSE) 2,421.00p 1.25%
Severn Trent (SVT) 2,960.00p 1.23%
Entain (ENT) 507.60p 1.12%
Reckitt Benckiser Group (RKT) 5,082.00p 0.79%
British American Tobacco (BATS) 4,107.00p 0.76%
United Utilities Group (UU.) 1,336.00p 0.68%
FTSE 100 - Fallers
Autotrader Group (AUTO) 490.50p -4.35%
Burberry Group (BRBY) 1,040.50p -3.92%
Games Workshop Group (GAW) 17,510.00p -3.04%
Lion Finance Group (BGEO) 13,320.00p -2.77%
Barclays (BARC) 483.90p -2.75%
Anglo American (AAL) 4,226.00p -2.33%
Lloyds Banking Group (LLOY) 109.50p -2.32%
Rolls-Royce Holdings (RR.) 1,448.00p -2.20%
HSBC Holdings (HSBA) 1,539.20p -2.18%
Coca-Cola HBC AG (CDI) (CCH) 4,492.00p -2.14%
FTSE 250 - Risers
Victrex plc (VCT) 989.00p 13.81%
Energean (ENOG) 846.50p 6.95%
Michael Page (PAGE) 210.40p 3.04%
B&M European Value Retail (BME) 232.40p 2.83%
AEP Plantations (AEP) 205.00p 2.50%
Harbour Energy (HBR) 275.20p 2.30%
Johnson Service Group (JSG) 135.80p 2.26%
Hansa Investment Company Limited (DI) (HAN) 338.00p 1.81%
WH Smith (SMWH) 380.60p 1.71%
Auction Technology Group (ATG) 422.80p 1.68%
FTSE 250 - Fallers
Rightmove (RMV) 463.60p -5.75%
Trustpilot Group (TRST) 253.40p -4.31%
Applied Nutrition (APN) 293.00p -3.78%
TBC Bank Group (TBCG) 4,934.00p -3.63%
Ocado Group (OCDO) 203.60p -3.14%
Oxford Biomedica (OXB) 453.50p -3.10%
NCC Group (NCC) 130.40p -2.98%
Hikma Pharmaceuticals (HIK) 1,559.00p -2.50%
Globaldata (DATA) 69.20p -2.40%
Shawbrook Group (SHAW) 318.00p -2.38%
119.32 (1.10%)
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