London stocks were set to open lower on Monday as escalating conflict in the Middle East pushed energy prices sharply higher and triggered a global market sell-off.
Futures data from IG suggested the FTSE 100 would fall about 80 points, or 0.8%, to around 10,203 at the open. The benchmark closed down 1.3% at 10,284.75 on Friday.
Energy markets surged, with Brent crude jumping to $108.95 a barrel early Monday from $90.85 late Friday as turmoil intensified after strikes by the United States and Israel on Iran.
Since the conflict began, oil prices have surged sharply, with West Texas Intermediate rising more than 75% and Brent climbing over 60%. Attacks on oilfields in southern Iraq and the autonomous Kurdistan Region have forced some facilities to shut down, while United Arab Emirates and Kuwait have begun reducing output.
Currency markets reflected the uncertainty. Sterling slipped to $1.3327 early Monday from $1.3387 at Friday’s close, while the euro weakened to $1.1559. The dollar strengthened slightly against the yen to ¥158.51.
US markets ended Friday sharply lower, with the Dow Jones Industrial Average falling 1.0%, the S&P 500 dropping 1.3%, and the Nasdaq Composite declining 1.6%.
The sell-off extended into Asia on Monday. Japan’s Nikkei 225 fell more than 5%, while Hong Kong’s Hang Seng Index dropped 1.6% and China’s Shanghai Composite slipped 0.6%. Australia’s S&P/ASX 200 closed down 2.9%.
Elsewhere, inflation in China accelerated in February. Data from the National Bureau of Statistics of China showed consumer prices rose 1.3% year-on-year, up from 0.2% in January and the fastest pace since early 2023, largely driven by spending during the Lunar New Year holiday.
Gold was trading at $5,126.60 an ounce early Monday, slightly lower than $5,142.35 on Friday, while Asian markets broadly declined as investors reacted to soaring energy prices and the deepening geopolitical crisis.
