FX.co ★ FTSE 100 Falls to 2-Month Low

The FTSE 100 dropped more than 1.5% to a two-month low on Monday, as investors reacted to escalating tensions in the Middle East and a sharp spike in oil prices. Brent crude climbed above $100 per barrel, stoking fears that prolonged energy disruptions could fuel a fresh bout of inflation. Financial stocks led the decline, with HSBC Holdings down more than 1%, Barclays off nearly 4%, and Lloyds Banking Group losing over 2.5%. Pharmaceutical shares also weakened: AstraZeneca fell 2.3%, while GSK slipped about 1.3% after Alfasigma agreed to acquire global rights to GSK’s drug linerixibat. Industrial and defence names were under pressure as well, including Rolls-Royce Holdings, which tumbled more than 6%, and BAE Systems, down around 1.5%. Miners were caught in the broader sell-off, with Rio Tinto, Glencore and Anglo American all recording notable losses. The only area of strength was among energy producers, where Shell and BP advanced as the jump in oil prices supported the sector.