Today's Edition
LONDON (DPA)
London's FTSE 100 Index joined global markets in tumbling lower after oil prices rocketed above 100 US dollars a barrel for the first time in nearly four years amid a mounting supply crisis caused by the Iran war.
The UK blue chip share index fell 1.7% after opening on Monday, down 181 points to 10103.71, after punishing falls last week on the escalating Middle East conflict.
Benchmark Brent crude soared by 16% to more than $107 a barrel, having at one stage reached nearly $120 in levels not seen since the summer of 2022.
It follows Iran's move to name the son of its late supreme leader in charge as the war spreads, with Iran blocking the crucial Strait of Hormuz shipping route.
Stock markets have slumped in response, with European indices also heavily in the red as Germany's Dax and the Cac 40 in France both dropped 2.6%.
This followed big declines in Asia overnight as Japan's Nikkei 225 dropped 5% and the Australian market saw its worst single day drop for nearly a year, down 3%.
Chancellor Rachel Reeves is expected to join a virtual emergency meeting of G7 finance ministers on Monday afternoon to discuss the crisis, with reports suggesting they will look at a possible joint release of petroleum from reserves co-ordinated by the International Energy Agency to help tackle the surge in oil prices.
Oil prices are now around 60% higher than they were when the war started.
The cost of crude can have a significant effect on wholesale fuel prices, which is sending costs at the petrol pumps sharply higher.
Wholesale gas prices feed through into electricity prices and how much it costs to heat people's homes.
