"A sudden supply shock unsettled the markets after Iran announced measures to block shipping through the Strait of Hormuz, a strategic channel through which approximately one-fifth of global oil supplies pass. This disruption caused oil prices to surge, with the global benchmark Brent crude rising more than 25 per cent and briefly reaching $120 per barrel as Asian markets opened."
"Not all companies were negatively impacted by the market turmoil; energy majors BP and Shell both saw their shares rise about 2 per cent, benefiting from the rise in oil prices. In contrast, mining stocks faced significant losses as commodity markets weakened. Shares of Anglo American fell 6.3 per cent, while Antofagasta dropped 5.7 per cent as copper prices declined to three-week lows."
"Travel companies were severely affected amid concerns that rising fuel prices could dampen demand. Shares in International Airlines Group, the owner of British Airways, fell by about 5 per cent as investors factored in rising aviation fuel costs. Banking stocks also came under pressure amid concerns that elevated energy prices could trigger a broader economic slowdown."
London's stock market experienced a sharp decline at the start of Monday's trading session following an escalating oil crisis. The FTSE 100 dropped 181 points to 10,103.71, a 1.8% decrease marking one of the steepest early declines since January. Mid-cap stocks fell even harder, with the FTSE 250 sliding 2.3%. Iran's announcement to block shipping through the Strait of Hormuz, which carries approximately one-fifth of global oil supplies, caused oil prices to surge dramatically. Brent crude rose more than 25%, briefly reaching $120 per barrel—the largest single-day increase in six years. Energy companies BP and Shell gained 2%, while mining stocks, airlines, and banks faced significant losses due to concerns about economic slowdown from elevated energy prices.
Read at London Business News | Londonlovesbusiness.com
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