The FTSE 100 fell 1% to around 10,800 on Monday, dragged down by a broad-based sell-off and increased demand for safe-haven assets as geopolitical tensions escalated. The decline followed a series of US and Israeli strikes on Iran, which prompted retaliatory attacks by Tehran on regional targets, further amplifying uncertainty.
Financial stocks were among the hardest hit: HSBC Holdings dropped 4.5%, Barclays slid 5.7%, and Lloyds Banking Group lost 3%. Airlines also faced heavy pressure amid widespread flight disruptions and cancellations, with International Airlines Group (IAG) tumbling 6.6% and easyJet falling 3.9%.
In contrast, energy stocks outperformed, supported by a sharp jump in oil and gas prices. Shell rose 6.1%, while BP advanced nearly 3%. Defense stocks also gained, with BAE Systems climbing 6.1%.
