London, March 9, 2026, 08:46 GMT
- FTSE 100 dropped 1.75% at the open, with oil jumping and losses hitting miners and travel stocks.
- Shares of Shell and BP climbed, lifted by crude surging close to $120 per barrel.
- Investors piled into the dollar, sending sterling lower.
The FTSE 100 in London tumbled 1.75% at the open, settling at 10,106, as oil prices surged and the Iran war rattled global markets. Anglo American shed 6.2%, Antofagasta slid 5%, and Rolls-Royce also gave up 5%. IAG, parent of British Airways, dropped 4.3%, with easyJet down 3.6%. Shell bucked the trend, climbing 1.7%, while BP advanced 1.4%.
This shift is key: oil’s steering inflation and rate expectations again, with UK stocks especially exposed. Energy, airlines, miners, banks—they all move when crude moves. Brent surged roughly 25%, reaching $119.50 a barrel as traders zeroed in on supply threats and trouble for shipping in the Strait of Hormuz.
Bond markets wasted no time. Early in the session, the two-year gilt yield surged 37 basis points to 4.239%—the sharpest daily jump since the gilt turmoil of September 2022, according to Reuters. G7 finance chiefs, the report noted, were preparing to discuss an emergency oil release later on Monday.
The pound dropped 0.7% to $1.3333, falling alongside other risk-sensitive currencies as investors snapped up dollars for cash and liquidity. “The United States’ net energy exporter status” is also giving the dollar a leg up over Europe, Ray Attrill, head of FX strategy at National Australia Bank, pointed out. Reuters
European markets faced a sharp early retreat, with the STOXX 600 off 2.34% at 0810 GMT. Banks and tech names bore the brunt; energy ticked up just a bit. Lufthansa dropped 3.9%, Air France-KLM shed 5.2%.
Airlines worldwide are feeling the squeeze as expensive fuel and extended flight paths pile on costs, with airspace still tight. Cirium tallied over 37,000 canceled Middle East-linked flights from Feb. 28 to March 8. “Uncertainty was already elevated before this latest blow, and now it’s only gotten worse,” aviation analyst Brendan Sobie said. Reuters
Clarksons logged an underlying pre-tax profit of £90.6 million for 2025, falling from £115.3 million the previous year, but is still lifting its full-year dividend to 112p, up 3%—marking the 23rd straight annual increase. Chief executive Andi Case pointed to “strong momentum” for the start of 2026, though ongoing geopolitical risks remain a concern. Investegate
Nscale, the British AI firm backed by Nvidia, announced a $2 billion fundraising round, setting its valuation at $14.6 billion. The move underlines how private capital flows and risk sentiment in public markets can head in different directions.
But earnings aren’t what’s keeping traders guessing today. “This oil shock won’t end until ships can sail freely through the Strait,” said Ed Yardeni at Yardeni Research. He flagged the risk that markets may soon factor in a return of 1970s-style stagflation—think sluggish growth, inflation that won’t quit. Reuters
