- FTSE 100 down 145 points to 9,917
- Wall Street opens in the red
- Echoes of Truss?
- 10-year gilt yields soar to 2008 highs
4.47pm: Stocks at multi-month lows
It was another losing day for global stocks amid continued conflict in the Middle East, with the FTSE 100 shedding 145 points at 9,917.
"Markets reacted sharply to escalating Middle East tensions, with equities falling to multi-month lows, gold dropping 2% and heading for its worst weekly fall in decades as surging energy prices reduced expectations for rate cuts and raised the prospect of tighter policy,” IG chief technical analyst Axel Rudolph said. “In the UK, 10-year Gilt yields hit 5%, a level last seen during the 2008 financial crisis.”
3.50pm: Markets rattled by Iran (again)
Equities fell on Friday as investors weighed the possibility of a US military operation against Kharg Island, Iran's principal oil export terminal, in a move that could further disrupt energy supplies through the Strait of Hormuz.
The FTSE 100 reversed an early gain to trade below 10,000 for the first time since the start of the year, while the FTSE 250 fell almost 250 points, with pub chain J D Wetherspoon the heaviest faller after disappointing results.
Wall Street also ripped into the red with the tech-heavy Nasdaq taking the brunt of the pain, nursing a 250-point loss.
Brent crude steadied around $104 a barrel after earlier touching $119, while West Texas Intermediate hovered near $95.
2.50pm: The bond vigilantes are back, says City commentator
The FTSE 100, having resisted the urge most of the day, lurched decisively into the red in the final throes of Friday's trading, falling 122 points to 9,940.79.
That leaves the blue-chip index almost exactly where it was at the start of the year, with downward momentum accelerated by reports suggesting the US is considering plans to occupy or blockade Kharg Island, vital to Iran's oil exports.
On the bond markets, UK government borrowing costs hit levels last seen during the financial crisis in 2008.
Neil Wilson, the veteran commentator at Saxo, is known for a colourful turn of phrase. His analysis of what's unfolding is this: The 'bond vigilantes', as he calls them, are back. And right now, they have Britain squarely in their sights.
The yield on two-year UK government gilts has surged more than half a percentage point since Wednesday, a move that already exceeds anything seen during the Liz Truss mini-budget crisis of 2022. The ten-year gilt yield is closing in on 5%, its highest level since 2008.
Several forces are hitting at once, Wilson says.
The immediate trigger is inflation. Reports that the Trump administration is weighing plans to seize or blockade Kharg Island, Iran's primary oil export hub, sent energy prices lurching higher this week.
Britain is unusually exposed to that kind of shock, thanks to deep structural flaws in how domestic energy bills are set and years of poor government policy choices on energy infrastructure.
The inflation fear is compounded by a deteriorating fiscal picture. Government borrowing figures for February came in worse than expected, leaving Chancellor Rachel Reeves with even less room than markets had assumed before the Middle East crisis erupted.
Then the Bank of England made things worse. Rather than acknowledging the growth risks posed by the conflict, it struck a hawkish tone on Thursday, leaving the door open to further interest rate increases.
The echoes of Jean-Claude Trichet are uncomfortable, Saxo's Wilson opines. The former European Central Bank president raised rates into an emerging crisis in 2011 and was forced into a humiliating reversal within months.
The Bank of England risks the same sleepwalk, he reckons.
This is not purely a British problem. US Treasury yields are also climbing, with the ten-year reaching its highest level since last July.
But Britain is the highest-beta bond market in the world, meaning it amplifies global moves, and the reasons for that are structural as much as cyclical, Wilson points out in his analysis.
For Keir Starmer and Rachel Reeves, with local elections in May and a political brand built on financial stability, the timing is brutal. Voters hate inflation. Markets hate weak balance sheets. Britain currently has both.
1.40pm: Wall Street starts in the red
The FTSE 100 maintained its position just over the gain line as Wall Street opened in the red. The tech-heavy Nasdaq was the biggest casualty with 0.7% opening fall.
12.30pm: London's blue-chip index bucks a global selloff
The FTSE 100 has so far resisted a broader market pullback that sent US stock futures lower on Friday, as investors digested reports that the Trump administration is weighing plans to occupy or blockade Kharg Island, Iran's primary oil export terminal.
Futures on the Dow Jones Industrial Average were indicated 0.4% lower, while contracts on the S&P 500 dropped 0.4% and Nasdaq 100 futures slid around 0.5%, extending a downbeat session on Wall Street.
Oil prices swung sharply in response, with Brent crude futures reversing an earlier gain to trade near $108 a barrel and West Texas Intermediate futures hovering just below $95.
Iran, meanwhile, pressed ahead with fresh attacks on Persian Gulf neighbours, with analysts warning that existing infrastructure damage would keep energy prices elevated.
The Dow Jones and Nasdaq Composite are both on course for a fourth consecutive weekly loss, with each index approaching correction territory, defined as a drop of 10% from a recent peak.
11.50am: Gilt yields soar on inflation fears
UK 10-year gilt yields have hit their highest level since 2008, driven by surging energy prices and renewed inflation concerns. Markets have shifted from expecting rate cuts to pricing a “higher-for-longer” path for interest rates.
Lale Akoner, global market analyst, said: “UK 10-year gilt yields at their highest level since 2008 signal a sharp repricing of inflation risk rather than any improvement in growth expectations. The driver is the renewed energy shock, with oil prices surging and raising concerns about a second-round inflation wave.”
The move is strongest at the front end of the curve, though long-term yields are also rising. The Bank of England faces a difficult balance: weak growth limits tightening, yet persistent inflation keeps pressure on rates, creating volatility across markets.
11.25: Golden lining
Gold prices have bounced back to $4,662 per ounce after hitting lows of $4,540 yesterday, reflecting continued market jitters over the conflict in Iran, according to SP Angel. The precious metal has fallen 7% over the past week and 14% since the outbreak of the war.
Earlier today, gold briefly climbed to $4,730 per ounce before settling around $4,670. Analysts at SP Angel attribute the pressure on prices to sustained profit taking, higher US Treasury yields, and a stronger dollar. The 10-year US Treasury yield has risen to 4.3%, up from 3.94% in late February, as borrowing costs increase amid a hawkish turn from central banks over renewed inflation concerns.
Meanwhile, major infrastructure damage in the Gulf has sparked worries about rising costs for LNG and crude, adding a further layer of uncertainty for investors.
The FTSE 100 is now 18 points up at 10,081.58, recovering from its mid-morning slump.
10.45am: Footsie off its lows
The FTSE 100 has recovered some of its mid-morning losses but is still down 20 points at 10,043.03. Wall Street futures, in the meantime, have extended their losses, with Nasdaq futures down 0.7%, S&P 500 futures down 0.5% and those for the Dow Jones 0.4% lower.
Nevertheless, easyJet, InterContinental Hotels and BA owner Consolidated International Airlines remain among the index's top gainers, up 3%, 1.8% and 1.5% respectively.
Brent crude futures are 1.4% up at $110.21 a barrel.
In Frankfurt, the DAX has also turned negative, down 0.3%, after a strong start. The Paris CAC 40 is marginally higher after reversing its earlier gains.
10am: FTSE declines as US futures go negative
The FTSE 100 has retraced the morning's gains as US stock futures turned negative, and the price of Brent crude oil ticked up again.
Mid-morning, London's blue-chip index is now 15 points down at 10,048.72. On Wall Street, Nasdaq futures have sunk 0.4%, while those for the S&P 500 and the Dow Jones are down 0.3% and 0.2%, respectively.
After easing back sharply from yesterday's $119 a barrel level, Brent crude futures are now 1% up at $109.80 a barrel.
"We are in the middle of a major selloff in risk assets, but it’s non-linear," commented Saxo UK investor strategist Neil Wilson. "Are we near the end, or is there more to come? The path depends on the expected outcome of the war, which is totally unknown."
Wilson noted that stocks opened higher on Friday morning in Europe, after a steep selloff in the previous session, because of the apparent de-escalation on energy infrastructure.
"Broadly, markets are starting to better price duration – i.e., a longer, protracted conflict and a long tail of restoring energy flows to anything like pre-war levels, which will ensure not just headline inflation rises in the short-term, but could also support higher longer-term inflation expectations. To illustrate, Iranian attacks will wipe out 17% of Qatar’s LNG capacity for three to five years, QatarEnergy CEO Saad al-Kaabi said yesterday."
9.40: Government borrowing jumps
The UK public sector borrowed £14.3 billion in February, up £2.2 billion from a year earlier and the second-highest February borrowing on record, behind 2021, according to the ONS. For the financial year so far, borrowing stands at £125.9 billion, slightly lower than last year, and around 4.1% of GDP. The current budget deficit was £5.1 billion in February, bringing the year-to-date total to £62.10 billion.
The ONS noted: "Initial estimates show that the public sector borrowed £14.3 billion in February 2026, £2.2 billion higher than in February 2025, and £6.9 billion above the Office for Budget Responsibility’s forecast."
8.15am: Relief rally?
The FTSE 100 rose in opening trades, recovering some of Thursday's steep losses, as oil prices eased after Israel's Prime Minister Netanyahu said Israel would no longer target Iran’s energy infrastructure.
Shortly into the session, London's blue-chip index was up 59 points at 10,122.64. It fell 2.4% yesterday. Brent crude oil was down 1.2% at $107.37 a barrel.
Airline easyJet PLC (LSE:EZJ) is leading the gainers, up 3%, followed by Intercontinental Hotels Group PLC (LSE:IHG) with a 2.9% gain. easyJet is still down close to 25% since the Middle East conflict started, and Intercontinental Hotels is down around 7%.
Other gainers include Melrose Industries PLC (LSE:MRO, OTC:MLSPF), British Airways owner International Consolidated Airlines Group SA (LSE:IAG) and Fresnillo PLC (LSE:FRES), all adding over 2%.
Smiths Group (LSE:SMIN) is leading the losers this morning, falling 4.9%, after the global technology company released half-year results and trimmed full-year guidance. BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) are also down on the lower oil price.
US markets are also expected to open higher this afternoon, with futures for the Dow Jones, the S&P 500 and the Nasdaq up between 0.1% and 0.3%.
7.50am: Chocolate shrinks as costs soar this Easter
Easter chocolate is getting a little less generous this year, while prices keep heading in the opposite direction, according to Which?
The watchdog found a clear case of “shrinkflation” across a range of big-name treats, with brands like Cadbury, Galaxy, and Toblerone quietly trimming sizes even as shelf prices rise.
The backdrop? Chocolate costs are climbing fast. While overall supermarket food inflation eased to 3.9%, chocolate prices jumped nearly 10%, largely due to global supply pressures.
That’s left shoppers paying noticeably more per bite. Some of the biggest Easter eggs have shrunk significantly while rising sharply in price per 100g, often by 30–40% or more. And in some cases, sizes stayed the same, but prices soared, with certain sharing bags and mini eggs jumping by over 50%.
The takeaway: this Easter, you might need to hunt a little harder for value, because those eggs aren’t quite as big (or as cheap) as they used to be.
7.35am: Oil comes off the boil
More on those oil prices.
Deutsche Bank’s Jim Reid said markets stabilised after an early surge in energy prices driven by Middle East tensions. Brent crude briefly spiked to $119 before easing back to around $107, while European gas prices also pared gains after sharp upward moves.
He noted that “the main saving grace” was the pullback in oil prices as the US and Israel signalled they wanted to avoid further attacks on energy infrastructure, calming fears of escalation. This helped the S&P 500 recover losses, although Europe’s STOXX 600 still posted its worst close of the year.
Reid highlighted tentative signs of de-escalation, but warned that uncertainty remains high, with no clarity on the Strait of Hormuz and the potential for a prolonged conflict. He also pointed to lingering pressure in gas markets after damage to Qatar’s LNG infrastructure, which could take years to repair.
7.15am: FTSE 100 called up after market rout
The FTSE 100 is expected to creep higher as the market pauses for breath after a rout saw the blue-chip index sink 242 points to 10,064, a 2.4% loss on Thursday.
Spreadbetters have the index opening 23 points higher when trading gets underway. Oil, in the meantime, has also levelled off, with Brent crude futures easing back 1.6% to $106.93 a barrel.
With energy markets in turmoil, threatening inflation. The Reserve Bank of Australia has raised rates again, while the US Federal Reserve stayed cautious, still signalling a possible rate cut if inflation falls to 2%, a scenario that looks optimistic, according to Swissquote's Ipek Ozkardeskaya.
The Swiss National Bank has more flexibility, with inflation close to zero, she added. In contrast, the European Central Bank and Bank of England struck a more worried tone on inflation at the conclusion of their meetings yesterday, reflecting Europe’s exposure to higher energy costs and weaker currencies against the dollar.
"A week packed with war headlines and central bank decisions comes to an end with one clear conclusion: the Middle East conflict is intensifying, and no one knows what the right monetary policy response should be," Ozkardeskaya said.
"What everyone agrees on is that rising oil and energy prices will push inflation higher in the short to medium term, depending on the duration of the conflict, while weighing on growth. This is a message echoed by the major central banks around the world."
In the US, stocks finished the session slightly lower on Thursday, with major indexes drifting into the red as traders balanced geopolitical headlines, energy moves, and a stronger US dollar.
The Dow Jones slipped about 0.4%, while the S&P 500 and Nasdaq each eased roughly 0.3%.