The FTSE 100 slipped around 0.5% to a seven-week low in Thursday afternoon trading, as Brent crude climbed above $105 a barrel following a warning from Iran that it was prepared for a more intense conflict. Mining stocks were among the hardest hit: Antofagasta and Anglo American each dropped more than 5%, while Endeavour, Glencore and Rio Tinto fell by more than 3%.
Associated British Foods was also a major decliner, losing over 9% after Primark’s sales disappointed and the group announced plans to demerge the retailer by December 2027.
Energy stocks offered some support to the index, with BP up 2% and Shell gaining 1.8% as the rise in oil prices buoyed the sector.
Meanwhile, the European Central Bank raised interest rates by 25 basis points, in line with expectations. The ECB also upgraded its inflation forecasts and cautioned that price growth is likely to remain above its 2% target for an extended period.
