The FTSE 100 fell more than 1.5% to a two-month low on Monday, as investors reacted to escalating tensions in the Middle East and a sharp surge in oil prices. Crude has jumped above $100 per barrel, raising concerns that prolonged energy disruptions could trigger a new wave of inflation. Financial stocks led the declines, with HSBC Holdings down over 1%, Barclays falling nearly 4%, and Lloyds Banking Group dropping more than 2.5%. Pharmaceutical companies also weakened, with AstraZeneca down 2.3% and GSK losing about 1.3% after Alfasigma agreed to acquire global rights to the drug linerixibat from GSK. Industrial and defence stocks also declined, including Rolls-Royce Holdings, which dropped more than 6%, and BAE Systems, down about 1.5%. Mining companies followed the broader sell-off, with Rio Tinto, Glencore and Anglo American posting notable losses. The only bright spot came from energy producers, with Shell and BP rising as higher oil prices boosted the sector.
