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UK Stocks Drop as Middle East War Keeps Investors Cautious

  • FTSE 100 down 0.5%, FTSE 250 down 0.4%
  • IEA agrees to release record amount of oil in response to crisis
  • Legal & General misses full ​year profit estimates
  • Balfour Beatty forecasts profit growth

March 11 (Reuters) - The UK's main indexes closed lower on Wednesday, as oil prices continued to climb on concerns that the Middle East conflict will disrupt supply, while disappointing corporate earnings also weighed on sentiment.

The ​blue-chip FTSE 100 closed down 0.5%, while the mid-cap FTSE 250 ​fell 0.4%.

Global stocks have sold off sharply in recent days ⁠as the the U.S.-Israeli war with Iran disrupted key shipping routes through the ​Strait of Hormuz, pushing oil prices , higher and raising the risk of an ​inflation shock.

Brent crude rose above $90 a barrel on Wednesday despite the International Energy Agency's proposal for a record release of oil reserves as analysts warned it will ​be inadequate to ease those fears.

British finance minister Rachel Reeves said she ​would consider action to shield households from surging energy costs, but that it was ‌premature ⁠to cap tariffs or freeze fuel duty now.

The energy index gained 2.1%, with oil majors Shell and BP up 1.9% and 2.8% respectively.

Most other FTSE 350 sub-sectors were in the red.

Investors also assessed a slew of ​mixed corporate updates.

Legal & ​General fell ⁠6.7% after the insurer missed estimates for its full-year profit and reported a lower solvency ratio as CEO Antonio ​Simoes pursues an overhaul.

Robert Walters dipped 7.9% after the recruiter ​scrapped its ⁠final dividend for 2025 following a swing to an annual pretax loss due to a weak job market.

Balfour Beatty rose 8.9% after the construction group ⁠forecast ​a high-single-digit percentage rise in 2026 profit ​from operations, with a record order book heavy with UK power projects, including nuclear power.

Reporting ​by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair and Nick Zieminski

Source: Reuters


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