LONDON, April 23, 2026, 08:38 BST
By 08:38 BST, London’s FTSE 100 was down 0.59% at 10,414.79, with Brent crude at $103.34 a barrel, as a fresh jump in oil and new warnings from Sainsbury and WH Smith kept pressure on UK stocks. The drop left London slightly weaker than the Euro STOXX 50, which was down 0.42%.
It matters because the shock is no longer theoretical for UK investors. March inflation accelerated to 3.3%, consumer optimism hit a record low, and the Bank of England goes into next week’s meeting with AJ Bell’s Danni Hewson warning of the “spectre of stagflation”. Reuters
Sainsbury said uncertainty around the Iran war could pull its 2026/27 operating profit — its preferred measure excluding some one-off items — to 975 million-1.075 billion pounds, echoing Tesco’s cautious tone from last week. WH Smith cut its annual profit view to 90 million-105 million pounds and suspended its dividend as higher jet fuel costs and weaker passenger numbers hit its travel business.
ASOS took a different line, saying it was seeking refunds for 7 million pounds of U.S. tariffs paid in the first half and sticking with its full-year outlook. Still, the message across UK consumer names was similar: costs are up, visibility is poor and management teams are getting more cautious.
Oil remains the key driver. Brent rose 1.2% to $103.17 a barrel at 0630 GMT after settling above $100 on Wednesday for the first time in more than two weeks, as U.S.-Iran talks stalled and shipping through the Strait of Hormuz remained disrupted.
That came even after Wall Street hit fresh records overnight on earnings optimism. In Europe, traders were also waiting for UK flash PMI surveys later on Thursday — early monthly snapshots of business activity — for a fresh read on how much of the energy shock is feeding into growth.
Wednesday already showed the split inside London’s market. BP and Shell rose with crude, while British Airways owner IAG, easyJet and Wizz Air fell as investors priced in higher fuel bills; miners including Fresnillo, Rio Tinto and Glencore also advanced as metal prices firmed. “The CPI figures confirm that the supply chain and energy pressures are beginning to bite,” Nick Saunders at Webull UK wrote. Reuters
A better fiscal number did little to steady the market. Official data showed Britain’s budget deficit narrowed to 132.0 billion pounds in 2025/26, 0.7 billion below the Office for Budget Responsibility forecast, but March borrowing topped expectations and debt-interest spending stayed high.
“Markets look very on edge here,” Saxo’s Charu Chanana said. Raymond James chief investment officer Larry Adam said “sustained high energy prices would materially increase risks” for company guidance, a warning that fits the early tone in London. Reuters
But the next move is still hostage to events beyond London. Any real easing in the Gulf or improvement in Hormuz shipping could relieve pressure on travel and retail shares, while a longer disruption would keep inflation, consumer spending and company outlooks under strain into the second quarter.
