FTSE 100 Wavers Amid Middle East Tensions and Inflation Concerns

The FTSE 100 index remained largely unchanged on Wednesday as investors closely watched developments in the Middle East and considered new inflation data from the UK. By 1048 GMT, the blue-chip index had dipped by 0.03% to 10,495.22 points, highlighting persistent concerns despite a ceasefire extension between the United States and Iran.

Crude oil prices spiked, with Brent crude surpassing $100 a barrel, after reports emerged that container ships were attacked in the Strait of Hormuz. This price surge hit airline stocks hard; British Airways' owner IAG decreased by 2.1%, EasyJet by 1.6%, and Wizz Air by 1.3%. However, oil giants BP and Shell benefited, seeing stock increases of 1.9% and 0.8%, respectively.

On the economic front, official figures showed UK consumer price inflation moving up to 3.3% in March, compared to 3% in February, driven by supply chain disruptions related to Middle Eastern tensions. The CPI data suggests growing economic stress with limited action options for the Bank of England, according to Affinity UK's CEO Nick Saunders.