British markets crashed at the open on Monday, rattled by the sudden outbreak of war in Iran. The FTSE 100 plunged 0.9% within minutes, while the pound tumbled nearly 1% against the dollar. Airline and bank shares were hammered, but oil and defence stocks soared on conflict fears.
FTSE Takes a Hit, Pound Slips
The FTSE 100 dived to 10,810.50, retreating sharply from Friday’s record close of 10,910.55. Sterling slid 0.94% to 1.3354 against the US dollar by 8.14am. Investors rushed to sell after news of the deadly strikes in Iran.
Shock From Operation Epic Fury
Saturday’s Israeli and US strikes killed Iran’s Supreme Leader Ali Khamenei, sparking a wave of retaliatory attacks by Tehran across the region, including on the UAE. The escalating violence has stoked fears of prolonged conflict.
Winners and Losers: Airlines & Banks vs Oil & Defence
- Biggest fallers: British Airways owner IAG plunged 9.78%, Informa dropped 6.7%, and hotel chain IHG slid 5.3%. Barclays, easyJet, Standard Chartered, HSBC, and Burberry also tumbled over 4%.
- Biggest risers: Defence giant BAE Systems jumped 6.9%. Oil majors Shell and BP rose over 5% as Brent crude surged nearly 10% to just under $80 a barrel. UK natural gas prices soared 25% to 98.5p per therm.
Gold Shines as Other Commodities Stumble
Gold hit $1,940 an ounce, up 2.4%, while silver climbed 1.7%. Meanwhile, copper, coal, and steel all dropped, with iron ore flatlining.
Global Markets Feel the Heat
Asia’s markets also tumbled. Japan’s Nikkei dropped 1.35%, Hong Kong’s Hang Seng slumped 2.32%, and India’s Nifty 50 lost 1.93%. The turmoil ahead of London’s open highlighted global jitters.
“Global equities are caught in broad-based selling — the FTSE would be 50 points lower without BP and Shell,” noted Chris Beauchamp, chief market analyst at IG. “Markets could be on the edge of a prolonged selloff as investors watch this conflict unfold for weeks.”
