LONDON, April 25, 2026, 18:11 BST
London’s FTSE 100 slipped 0.8% to 10,379.08 on Friday, breaking a four-week winning streak. Higher oil prices, dimming bets on swift U.S.-Iran peace, and a Bank of England caution on global equities all pressured sentiment. The mid-cap FTSE 250 tracked the move, also dropping 0.8%.
This shift is significant: London’s rally—previously buoyed by a tentative relief trade following the U.S.-Iran ceasefire news—faces a fresh challenge. Crude prices have jumped past $100 a barrel, and jitters persist over the Strait of Hormuz, still a crucial artery for global energy flows.
The pressure isn’t limited to geopolitics. March retail data revealed that consumers kept spending, though gains were driven mainly by higher fuel purchases as prices climbed—household confidence didn’t show a broad rebound. Retail sales volumes increased 0.7% in March, following a revised 0.6% drop in February; strip out automotive fuel, and the rise was just 0.2%.
The FTSE 100 logged its fifth consecutive loss, dropping about 2.5% for the week and slipping to its lowest in over two weeks by one market-data gauge. Sure, it’s still up over the last month and year. But after Friday’s slide, the shift from chasing records to playing defense was hard to miss.
Banks and pharma names dragged. Barclays dipped 0.9%; HSBC shed 1.3%. AstraZeneca tumbled 3.7%, GSK down 2.7%—enough to push the pharma sector off 3%. Wizz Air slid 3.3% with airlines coming under pressure from costlier fuel.
Support showed up in a few corners, though it barely made a dent in the overall picture. Retail eked out a 0.1% rise, while tech managed a 1% lift, thanks mostly to a sharp 14.5% rally in Computacenter. The technology services firm told investors it expects to surpass its annual profit target.
Company headlines tightened the spotlight on inflation. Shares in Mondi tumbled 11.1% after the paper and packaging firm flagged mounting energy, logistics and raw material expenses, warning that recent price hikes won’t fully ease the pressure until the third quarter. “We’re seeing the worst of it right now,” Chief Executive Andrew King told analysts. Reuters
Mondi flagged that turbulence in the Middle East was stirring up more volatility for an already challenging market, despite its own limited direct ties to the region. The company also announced plans to shutter three additional converting sites—one each in Hungary, Poland, and Germany—with about 450 jobs set to go this year.
Retail figures offered limited reassurance. Thomas Pugh, chief UK economist at RSM, flagged that prolonged uncertainty could push consumers to rethink spending—an uneasy contrast to March’s positive sales numbers. Tesco and Sainsbury’s report no significant shifts in customer behaviour so far, but Primark noted April saw slower trading after March’s robust performance.
Europe was under the same kind of pressure. The STOXX 600—covering the region’s major stocks—dipped 0.6% Friday, dropping 2.5% for the week and breaking a four-week winning streak. UBS Global Wealth Management’s Mark Haefele pointed to healthcare as an area “less sensitive to higher energy prices,” and highlighted industrials benefiting from longer-term trends. Reuters
The Bank of England dialed up its warnings. Deputy Governor Sarah Breeden, speaking to the BBC, flagged the risk that multiple shocks could “crystallise at the same time”—she pointed to private credit (lending from non-bank funds) and AI-driven valuations under pressure. “Unusual” was the word AJ Bell investment director Russ Mould used, noting how rarely BoE officials issue such blunt warnings about stocks. The Guardian
Still, risk swings in both directions. Signs of progress on reopening energy corridors or restarting U.S.-Iran negotiations might cool off oil prices, potentially giving some relief to airlines, retailers, and stocks exposed to interest rates. Should the turmoil persist, though, investors could be staring at steeper company expenses, sinking consumer morale, and tighter constraints for central banks trying to ignore inflation.
So far, the UK stock market hasn’t crashed—what’s happening is a rally running out of cushion. London investors, heading into the weekend, seem less interested in March’s sales rebound and fixated instead on just how persistent the oil shock might be.
