Stocks in London are expected to open significantly lower on Thursday after fresh attacks on energy infrastructure in the Middle East rattled global markets and pushed oil prices higher.
Futures data indicate the FTSE 100 will open 100.4 points lower, down 1.0%, at 10,204.89, following a 0.9% decline on Wednesday.
Oil prices are climbing sharply again, adding to the pressure facing central banks as energy-driven inflation risks intensify.
Brent crude is up 5.9% at $113.76 a barrel, as escalating tensions in the Middle East continue to rattle global energy markets. After Iran said it had inflicted “extensive damage” on Qatar’s Ras Laffan LNG complex, the world’s largest liquefied natural gas facility.
Gas prices are also surging. The UK month-ahead wholesale gas price has jumped 25.5% to 175p per therm, its highest level since August 2022.
Qatar’s defence ministry said five missiles were launched, with four intercepted and one striking the site. QatarEnergy confirmed damage but reported no casualties. The strike marks a sharp escalation in the conflict and raises concerns over global energy supply, given Qatar’s role as a major LNG exporter.
In currency markets, sterling weakened to $1.3265, down from $1.3334, while the euro also slipped to $1.1465. The dollar edged higher against the yen to ¥159.67.
Global equities reflected the risk-off tone. On Wall Street, the Dow Jones Industrial Average fell 1.6%, the S&P 500 dropped 1.4%, and the Nasdaq Composite declined 1.5%.
The Federal Reserve held interest rates steady at 3.50%–3.75%, citing elevated uncertainty linked to developments in the Middle East. One policymaker dissented in favour of a rate cut.
Asian markets also fell sharply. Japan’s Nikkei 225 dropped 3.5%, while China’s Shanghai Composite lost 1.5% and Hong Kong’s Hang Seng Index fell 2.0%.
