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Oil Spike, Gulf Strikes Jolt Markets as FTSE 100 Posts Worst Week of the Year

Energy supply shocks plus weak US hiring are driving a sharp market repricing.

Overview

  • London’s blue‑chip index fell 5.7% for the week, erasing about £150.1 billion in value, with travel and other rate‑sensitive stocks leading declines.
  • Brent crude traded above $90 a barrel and briefly topped $92 after Kuwait joined Qatar in halting output and attacks were reported on regional oil assets.
  • Iranian state TV reported a drone strike on a ship in the Strait of Hormuz as shipping firms stayed cautious, and the US Navy prepared to escort vessels when feasible.
  • UK 10‑year gilt yields climbed into the mid‑4% range as investors pushed back expectations for near‑term rate cuts, mirroring broader bond selloffs.
  • US non‑farm payrolls fell by 92,000 in February and unemployment rose to 4.4%, adding to risk‑off sentiment already fueled by the energy shock.