Key facts
- The FTSE 100 index fell 1.7% to 10,489.04 points on Wednesday.
- This was the index's largest single-day drop since May 15.
- The midcap FTSE 250 index fell 1.5%, its worst day since mid-March.
- Over 80% of FTSE 100 components closed in the red.
- Oil prices jumped around 8% on renewed fears of Middle East supply disruptions.
- Gold prices dropped more than 1%.
The FTSE 100 index experienced its largest single-day decline since May on Wednesday, as European markets were broadly impacted by escalating geopolitical tensions. The sell-off was primarily triggered by U.S. President Donald Trump's statement that an initial agreement to end the war on Iran was over, which re-ignited concerns about potential disruptions to Middle East oil supplies.
The blue-chip FTSE 100 index closed down 1.7% at 10,489.04 points, marking its worst performance since May 15. The midcap FTSE 250 index also saw a significant drop, falling 1.5%, its worst day since mid-March. More than 80% of the companies listed on the FTSE 100 finished the trading session in negative territory.
Energy stocks were a notable exception, with BP and Shell rising 3.5% and 2.3% respectively, as oil prices jumped approximately 8% due to renewed fears of supply disruptions. Conversely, industrial metal miners were the biggest drag on the index, and precious metals miners fell 7% as gold prices declined over 1% amid concerns about inflation and potential interest rate hikes.
In individual stock news, travel firm Jet2 climbed 8.2% after indicating that tourists were increasingly committed to their travel plans. Vistry, a large affordable housing builder, dropped 7.1% after warning of a first-half pre-tax loss. Online trading platform IG Group fell 2.2% following a proposal to establish a new holding company in Jersey as part of a strategic overhaul.