Friday at 9: 00 a. m. ET — UK households and investors face higher energy bills and weaker portfolios after oil-driven market swings pushed the ftse 100 down, with the blue-chip index closing 1. 24% lower as the Middle East conflict entered its seventh day.
IMI and shareholders see mixed returns amid market stress
Shareholders in specific blue-chip companies saw uneven outcomes: IMI rose 2. 25% even as the broader market weakened, reporting statutory revenue of 2. 30 billion pounds and after-tax profit of 309. 9 million pounds for the year, and announcing a 500 million pound share buyback. That gain for IMI contrasted with declines across other sectors, leaving investors to absorb both stock-level gains and index-level losses on the same trading session.
Ftse 100 slide tied to halted shipping and soaring energy prices
Trading strains that contributed to the ftse 100’s fall included disruptions to oil and gas flows through a critical waterway near Iran, where shipping traffic has almost entirely halted and about 200 tankers have been effectively stranded. Brent crude had jumped by 12% since the onset of the broader military actions in the region, and benchmark UK gas prices surged by over 60% since the conflict began, closing at 128p per therm by the end of trading on Wednesday.
Oxford Economics warns of higher inflation and household cost increases
Economists at Oxford Economics estimate the conflict will add 0. 4 percentage points to UK inflation in 2026, noting that higher oil prices will quickly feed through to petrol prices and a rise in European gas prices will cause a sharp increase in household energy bills in July. If the surge in energy prices persists or expands, the Monetary Policy Committee will be set for an extended pause on interest rate cuts; if the conflict is short and energy prices quickly fall back, the committee would probably resume cutting in either April or June.
Still, lawmakers and markets are reacting to concrete operational hits: Saudi Arabia reported an attempted drone attack on its Ras Tanura oil refinery this week, and one of the world’s largest producers suspended LNG production. Insurance premiums for vessels identified as American, British or Israeli have risen significantly, adding cost and logistical pressure to already constrained energy supplies.
Yet companies tied to commodities mirrored the volatility. Mining groups recorded sharp single-day declines, with Anglo American down 4. 38%, Antofagasta down 3. 09% and Glencore down 2. 43% at the close of trading. Those sector moves amplified headline weakness on the index even as some industrial names posted gains.
For households, the immediate signal is higher bills: the benchmark UK gas price’s move to 128p per therm and the broader jump in energy costs mean higher household energy payments are likely, while rising petrol costs will affect transport and goods. For investors, the ftse 100’s drop and mixed corporate results leave near-term portfolio performance tied closely to the path of energy prices and regional stability.
If the conflict is short and energy prices quickly fall back, Oxford Economics expects the Monetary Policy Committee will probably resume cutting in either April or June.
