Market Turbulence: Oil Prices and U.S.-Iran Tensions Shake FTSE 100

The blue-chip FTSE 100 index took a hit on Thursday, plunging 0.8% amid rising oil prices and mounting geopolitical tensions between the U.S. and Iran. Investors were on edge, closely analyzing numerous corporate earnings reports.

The oil market saw Brent crude futures jump past $100 a barrel, prompted by Iran's firm stance in the Strait of Hormuz, which remained shut until a U.S. naval blockade is lifted. This escalation had a ripple effect on travel and leisure stocks, with Wizz Air and Carnival experiencing notable declines.

As inflation fears loomed due to higher input costs within British firms, the possibility of a Bank of England rate hike intensified, rising from a 40% to a 70% probability within a week. Meanwhile, while financial sector equities, including Barclays and HSBC, slipped, LSEG shares gained following a positive revenue forecast.