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The UK could enjoy a 50 per cent production boost without breaking its net-zero pledges
HHeadlines

Diploma leads stocks as pound ticks up; Oil dips

  • March 18, 2026

Wednesday 18 March 2026 6:45 am
 |  Updated: 

Wednesday 18 March 2026 9:11 am

The UK could enjoy a 50 per cent production boost without breaking its net-zero pledges The FTSE 100 has been hit by rising oil prices.

Good morning and welcome back to the City AM liveblog.

The FTSE 100 index closed up 0.8 per cent higher on Tuesday at 10,403.60p.

The gains were accompanied by a stronger performance from the pound, which finished up $1.334 by the time London markets closed, compared to $1.329 on Monday.

Sterling and the City were able to shake off additional woes around oil prices after Brent crude – the international bench mark for oil – inched back up, settling comfortably in triple-digits.

The move did help FTSE 100 heavyweights Shell and BP, which rose over one per cent and three per cent respectively in Tuesday’s session.

“London’s FTSE 100 managed to build on yesterday’s forward momentum in the face of another jump in the price of oil” said AJ Bell head of financial analysis Danni Hewson.

But Tuesday also offered a timely reminder of the inflationary consequences of the unfolding conflict in the Middle East.

Australia’s central bank raised benchmark policy rates for a second-straight time, dragging them back to the highest since April 2025 at 4.1 per cent, amid sticky inflation.

The 25 basis points hike was in line with expectations from analysts polled by Reuters, and also came as the nation’s inflation remained elevated above the bank’s upper limit of three per cent.

Attention now turns to the Bank of England, Federal Reserve and European Central Bank, which are all set for major rate decisions this week.

We’ll be bringing you the latest news and analysis of the morning.

Here are a few of our top stories from yesterday:

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FTSE 100 Live: Stocks soar and oil dips as Trump says war is ‘very complete’

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