Brent crude topped $100 a barrel on Thursday after Iran tightened control of the Strait of Hormuz, stoking fears of supply disruption. The move knocked the FTSE 100 down 0.8% to 10,388.84 that day; it eased to 10,425.07 on Friday, a 0.31% decline and the index's fifth straight session of losses, as traders also pared back hopes for renewed US–Iran talks and revised Bank of England rate expectations.

Market moves and numbers The FTSE 100 lost 0.8% to 10,388.84 on Thursday as an immediate reaction to rising oil. By Friday the index closed at 10,425.07, down 0.31% on the day and marking a fifth straight session of losses for the blue‑chip benchmark. The mid‑cap FTSE 250 also showed broader weakness, falling about 1.1% in one session as investors pulled back from stocks seen as most exposed to an energy‑driven hit to margins. Despite the recent weakness, the FTSE 100 remains up roughly 5% so far this year and about 24% over the past 12 months, a context that suggests much of the moves reflected profit‑taking rather than the start of a fresh bear market. Oil surge and the Iran standoff Brent crude moved above the $100‑per‑barrel mark after Iran tightened control of the Strait of Hormuz and linked reopening to lifting a US naval blockade. Markets worried about potential supply disruption through a key seaborne oil chokepoint. Higher crude hits beyond energy firms: it raises airlines' and travel firms' operating bills, reduces consumer disposable income through higher petrol and heating costs, and increases input costs for manufacturers. Traders and commentators cited the oil move as the main driver of the sell‑off in travel and leisure names and a trigger for margin warnings from packaging and industrial groups. Corporate pain: sellers, warnings and safe havens Company‑specific news amplified the market move. Notable moves included: - WH Smith plunged 10.6% after cutting its annual profit forecast and suspending its dividend. - Wizz Air and other airlines fell as rising fuel costs pressured margins. - Packaging group Mondi tumbled roughly 6% after warning that higher energy costs were eroding operating margins. - Banking stocks, including Barclays and HSBC, lost ground amid cautious positioning and reassessed growth outlooks. - Defensive and income‑oriented names attracted buyers: J Sainsbury and British American Tobacco rose, while BP climbed as higher oil supports upstream revenues. The London Stock Exchange Group also posted a healthy percentage gain among active names. Costs, inflation and the rate outlook Survey data pointed to rising costs across British firms, with the share reporting higher input prices reaching a record level in the recent reading. Companies face higher fuel, freight and commodity bills at a time when consumer spending shows some resilience — a combination that squeezes margins unless firms can pass costs on to customers. Markets have reacted by repricing expectations for Bank of England policy. Traders are now putting stronger odds on a rate rise in June, with LSEG data showing around a 70% probability.

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Traders now price roughly a 70% chance of a Bank of England rate rise in June, according to LSEG data.

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