London, May 28, 2026, 08:23 BST
- FTSE 100 dropped roughly 1% at the open, snapping an eight-session winning streak.
- Brent crude jumped almost 4% after new tensions between the U.S. and Iran put inflation and rate concerns back in focus.
- SSE fell after reporting lower full-year earnings. Losses in the stock weighed on the market, with ex-dividend utilities and miners also under pressure.
FTSE 100 drops at the open Thursday, snapping its eight-session rally as renewed gains in oil and new Middle East military news rattled London investors out of the recent surge.
FTSE 100 slips after open, FTSE 250 also lower The FTSE 100 fell 102.06 points, or 0.97%, to 10,402.95 after starting at 10,437.2. The FTSE 250 index dropped 0.29% to 23,316.90 soon after the open.
FTSE 100 snapped back early Thursday after closing Wednesday at 10,505.01, about 4% off its late-February high. Oil was under pressure and mid-caps got a lift from positive results at Pets at Home and Hollywood Bowl, but that pattern unwound quickly.
Brent crude rallied 3.6% to $97.71 a barrel after another U.S. strike on Iran and word of missile attacks in Kuwait hit hopes for a deal to allow shipping in the Strait of Hormuz. FTSE futures slipped 0.9% ahead of London trading.
Risk-off trading gripped London as well as Asia, with Japan’s Nikkei down 1.4%, South Korea’s KOSPI off 3.2%, and the MSCI Asia ex-Japan index down 2.1%. Rising oil kept bond yields moving higher, as investors asked for more to hold government bonds.
Markets could see a new ceasefire or more fighting in the next two weeks, according to Madison Cartwright, senior geo-economics analyst at CBA. Cartwright told clients the odds of a deal are at 70%. He noted insurance for ships crossing the Strait of Hormuz is now “prohibitively expensive” and warned Iran might still impose “a toll by another name.” Reuters
Geopolitics weren’t the only factor in play. Gold and silver miners gave up ground as precious metals slipped, with Fresnillo off 3.45% and Endeavour Mining down 3.5% just after the bell. BT, AstraZeneca, Auto Trader, and Barratt Redrow also lost between 1.8% and 2.8%.
Auto Trader and Fresnillo led the FTSE 100 decliners, according to MarketScreener data. AstraZeneca, BT and Barratt Redrow were also near the bottom of the index. Babcock and Melrose gained, with buyers sticking to defence and engineering stocks.
Ex-dividend trading put more pressure on the index. Buyers miss out on the latest declared payout after the ex-div date, which usually cuts the share price. Utilities National Grid and Severn Trent fell, along with Kingfisher and Associated British Foods.
SSE shares moved lower after the company posted a 5% drop in adjusted EPS to 153.5 pence for the year ending March 31. That came as adjusted investment and capital spending jumped 23% to a record £3.59 billion. Chief Executive Martin Pibworth said SSE is “accelerating electrification” and adding infrastructure for UK energy security. Investing.com UK
SSE stuck with its longer-term targets. Adjusted net debt and hybrid capital came in at £10.10 billion. The company raised its full-year dividend by 7% to 68.7 pence and kept adjusted EPS guidance for 2026-27 at 168 pence to 193 pence. National Grid and Severn Trent, both sector peers, added to the day’s ex-dividend pressure on the tape.
Investors are waiting for U.S. personal consumption expenditures numbers, the Fed’s main inflation measure. Reuters said higher fuel costs could push headline PCE inflation to 3.8%, the highest in three years, raising concerns about global rates and stock prices.
But there’s a chance the move down doesn’t stick. Oil could fall and bond pressure ease if a solid ceasefire and Hormuz deal happen, which might let UK shares find support. If violence spreads or U.S. inflation beats forecasts, markets could reverse: yields go up, rate-sensitive shares fall, London takes a hit.
