UK stocks drop as Middle East war keeps investors cautious (updated)
11/03/2026 17:18
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 Updates to market close 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 .FTSE closed down 0.5%, while the mid-cap FTSE 250 .FTMC 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 LCOc1, CLc1 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. O/R 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 .FTNMX601010 gained 2.1%, with oil majors Shell SHEL.L and BP BP.L 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 LGEN.L 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 RWA.L 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 BALF.L 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) ((tharuniyaa@thomsonreuters.com))