The FTSE 100 Index Closes 3.03% Lower

The FTSE 100 Index dropped -327 points or 3.03 percent on Tuesday to close at 10453 points. Losses were led by Intertek (-17.63%), Endeavour (-6.77%) and International Airlines Group (-6.59%).

The FTSE 100 plunged 2.9% on Tuesday, marking its biggest one-day drop since April 2025, as the escalating Middle East conflict rattled investors. Banks and travel stocks led the selloff amid fears that prolonged tensions and surging oil prices could disrupt economic activity and keep inflation elevated, prompting traders to scale back expectations for near-term interest rate cuts. Oil major BP was a rare gainer, rising about 1% as crude prices jumped. Lenders including HSBC Holdings, Barclays and Lloyds Banking Group fell between 3.2% and 5.4%. International Airlines Group dropped over 6.5% as airspace closures triggered flight cancellations, dragging the broader FTSE 350 travel and leisure index down 3%. Meanwhile, the Office for Budget Responsibility cut its 2026 growth forecast, adding to the cautious outlook.

The FTSE 100 fell 1.8% on Tuesday, adding to a 1.2% decline in the previous session, as escalating tensions in the Middle East unsettled global markets. President Donald Trump said the US would do “whatever it takes” and gave no clear timeline for how long a conflict with Iran could last, deepening uncertainty and prompting investors to pull back from risk assets. Financial stocks led the selloff, with HSBC Holdings down 3.5%, Barclays 4%, NatWest Group 1.5%, Lloyds Banking Group 3.1% and Standard Chartered 3.5%. Fresnillo slipped nearly 3% as silver prices fell, despite reporting full-year EBITDA up more than 80% to $2.8 billion. In contrast, BP edged 1% higher, supported by rising oil prices.