Markets slide on report US to send more troops to Middle East<\/p>\n
Shares in London are suffering an end-of-week sell-off, following a report that the US is to send more troops to the Middle East.<\/p>\n
The blue-chip FTSE 100 share index is now down 90 points, or 0.9%, at 9970 points, back below the 10,000-point mark. That\u2019s its lowest level since 5 January, as the Iran<\/a> war wipes out almost all of its gains during 2026.<\/p>\n Energy company BP (-3.6%) is among the top fallers, along with copper producer Antofagasta (-3.4%).<\/p>\n US bond prices are also weakening, sending bond yields higher.<\/p>\n Reuters is reporting that the United States military is deploying thousands of additional Marines and Sailors to the Middle East, according to three US officials, adding:<\/p>\n double quotation markOne of the officials, speaking on the condition of anonymity, said that the USS Boxer, along with the Marie Expeditionary Unit aboard, were departing the West Coast of the United States about 3 weeks ahead of schedule.<\/p>\n The US dollar, a traditional safe-haven in times of geopolitical tension, is strengthening, knocking the pound down by over a cent to $1.331.<\/p>\n Gold, silver, and platinum prices are also falling.<\/p>\n Share<\/a><\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Closing post<\/p>\n Time to wrap up\u2026.<\/p>\n UK government borrowing costs have reached their highest level since 2008, while financial markets now expect up to three interest rate rises this year as investors digest the impact of the Iran<\/a> conflict.<\/p>\n The yield, or interest rate, on 10-year borrowing was pushed to heights not seen since the global financial crisis, as investors dumped UK government bonds.<\/p>\n The market move followed the Bank of England\u2019s decision on Thursday to leave interest rates on hold<\/a> at 3.75% and hint at a future increase. By Friday, markets were pricing in as many as three interest rate rises in 2026.<\/p>\n Higher gilt yields create a headache for the chancellor, Rachel Reeves<\/a>, by pushing up the cost of servicing the government\u2019s debt pile.<\/p>\n The 10-year yield has traded above 5% by mid-afternoon \u2013 the highest level since the depths of the global financial crisis in mid-2008.<\/p>\n Stock markets fell again too, with Britain\u2019s FTSE 100 closing at its lowest level since late last December.<\/p>\n Household energy bills in Great Britain could increase by more than \u00a3330 a year to almost \u00a32,000 from this summer after the Iran<\/a> war pushed the UK\u2019s gas market past three-year highs.<\/p>\n A typical combined household gas and electricity bill is now forecast to reach \u00a31,972 a year from July under the UK government\u2019s quarterly price cap, according to analysis by the energy consultancy Cornwall Insight,.<\/p>\n The fresh forecast has soared above an estimate from two weeks ago when the consultants predicted, after only five days of war in the Middle East, that the price cap could climb to \u00a31,800 a year from July, up from the \u00a31,641 cap<\/a> for April to June.<\/p>\n Share<\/a>FTSE 100 closes down for the year<\/p>\n After a rough day\u2019s trading, Britain\u2019s FTSE<\/a> 100 share index has ended the day at its loweest level since 29 December 2025.<\/p>\n The \u201cFootsie\u201d has shed another 1.4% of its value today, and fell by 145 points to close at 9,918 points tonight.<\/p>\n That confirms that the index has lost all its earlier gains in 2026, which had been a strong year for share prices before the Iran<\/a> war began at the end of February (when the FTSE 100 was over 10,900 points)<\/p>\n Share<\/a><\/p>\n Updated at\u00a012.52 EDT<\/p>\n Easter fuel warning as petrol and diesel rise again<\/p>\n UK motorists driving over the Easter period are likely to face higher fuel costs, the RAC warn.<\/p>\n New RAC data shows that average petrol and diesel prices have risen again today.<\/p>\n The average price of a litre of unleaded petrol is up another 0.9p to 144.51p.<\/p>\n Diesel has risen by another 1.8p to 166.24p a litre.<\/p>\n RAC head of policy Simon Williams explains:<\/p>\n double quotation mark\u201cSince the conflict began, average petrol prices are now almost 12p (9%) higher at 144.51p a litre, with diesel up by twice that amount (24p, 17%) to 166.24p. Diesel drivers have seen prices rise by 2p over the last two days alone. The cost of filling a typical family car with unleaded is \u00a36.40 more now (\u00a379.48 for a tank) than at the start of March, while the figure for diesel is a hefty \u00a313 (\u00a391.43 for a tank).<\/p>\n \u201cThe oil price has been consistently above the $100 a barrel mark this week, so unfortunately further rises look all but inevitable going into next week. The average price of a litre of unleaded is likely to reach 150p, and diesel possibly 180p, by Easter. With many people heavily dependent on the car, the pressure on household budgets is beginning to intensify.<\/p>\n Share<\/a><\/p>\n UK mortgages are likely to get more expensive next week, given the jump in UK bond yields today and market expectations of three rate rises this year.<\/p>\n David Hollingworth, associate director at L&C Mortgages<\/a> says:<\/p>\n double quotation mark\u201cLender repricing of fixed rates continues at pace as increasingly hectic market movement forces changes to be implemented at pace. Market reaction to the ongoing conflict and the rising threat of upward pressure on inflation has slipped into a higher gear in the last couple of days.<\/p>\n \u201cLenders are more frequently withdrawing at very short notice and\/or pulling deals without any immediate replacement. The spike in funding costs results from the market view that future interest rate movement has shifted from further cuts this year to more increases.<\/p>\n \u201cThe frequent rate changes are causing significant spikes in business volume for lenders. That is almost inevitably going to put some strain on servicing, so borrowers may see the time to receive a mortgage offer edge out. Lender rate hikes will often be provoked by a desire to manage volume but with so much volatility and the accelerated pace of rate changes, it\u2019s increasingly difficult for lenders to make a judgment.<\/p>\n \u201cI expect that mortgage borrowers will have to resign themselves to more rounds of repricing next week and those looking to secure a new deal face a \u2018now you see it, now you don\u2019t\u2019 marketplace, at least in the near term.\u201d<\/p>\n Share<\/a>FTSE 100 now negative for 2026<\/p>\n Britain\u2019s blue-chip stock index is now negative for the year, after the Iranian war wiped out all its gains.<\/p>\n The FTSE<\/a> 100 index has now dropped to 9,917 points, a fall of 1.46% or 146 points today. That takes it below its closing value on 31 December 2025, of 9,931.38 points.<\/p>\n Just before the Iran war began, the Footsie was trading at an alltime high over 10,900 points, and traders were anticipating it hitting 11,000 points soon.<\/p>\n Not. Any. More.<\/p>\n A chart showing the FTSE 100 during 2026 Photograph: LSEGShare<\/a><\/p>\n Even German government debt, traditionally a safe-haven asset, is suffering from the slump in bond price today.<\/p>\n German 10-year government bond yields have hit their highest since the middle of the euro zone crisis in 2011 (A truly dramatic time\u2026<\/a>), as investors anticipate an inflation shock from the Iran war.<\/p>\n The German 10-year yield has hit a high of 3.025%.<\/p>\n UK 10-year bond yields, though, are accelerating their surge higher \u2013 to 5.01%.<\/p>\n Share<\/a><\/p>\n Updated at\u00a011.12 EDT<\/p>\n Investors are also digesting a report that the US is considering plans to occupy or blockade Iran\u2019s Kharg Island to pressure Tehran to reopen the strait of Hormuz<\/a>, despite earlier suggestions by Donald Trump that he was not leaning towards putting \u201cboots on the ground\u201d.<\/p>\n The claims, made on the Axios website, followed previous reporting that the US was considering occupying the key Iranian oil terminal<\/a>.<\/p>\n Share<\/a>Markets slide on report US to send more troops to Middle East<\/p>\n Shares in London are suffering an end-of-week sell-off, following a report that the US is to send more troops to the Middle East.<\/p>\n The blue-chip FTSE 100 share index is now down 90 points, or 0.9%, at 9970 points, back below the 10,000-point mark. That\u2019s its lowest level since 5 January, as the Iran<\/a> war wipes out almost all of its gains during 2026.<\/p>\n Energy company BP (-3.6%) is among the top fallers, along with copper producer Antofagasta (-3.4%).<\/p>\n US bond prices are also weakening, sending bond yields higher.<\/p>\n Reuters is reporting that the United States military is deploying thousands of additional Marines and Sailors to the Middle East, according to three US officials, adding:<\/p>\n double quotation markOne of the officials, speaking on the condition of anonymity, said that the USS Boxer, along with the Marie Expeditionary Unit aboard, were departing the West Coast of the United States about 3 weeks ahead of schedule.<\/p>\n The US dollar, a traditional safe-haven in times of geopolitical tension, is strengthening, knocking the pound down by over a cent to $1.331.<\/p>\n Gold, silver, and platinum prices are also falling.<\/p>\n Share<\/a>Share<\/a><\/p>\n UK government bonds are being hit by two factors \u2013 forecast of higher inflation, and fading hopes of interest rate cuts.<\/p>\n Ben Seager-Scott, chief investment officer at professional servicse group Forvis Mazars, explains:<\/p>\n double quotation mark\u201cBonds continue to bear the brunt of the market ramifications even as equity markets attempt to take events in their stride. The main reason for this is that equity markets are looking through the noise and can likely pass through a lot of the inflation over the medium term, whilst bonds, being more mechanical in nature, are forced to wear it.<\/p>\n \u201cThere are two drivers of bond weakness – the expectation of higher inflation and the compensation investors demand for it, coupled with reduced chances of central bank cuts whilst inflation and uncertainty persist.<\/p>\n \u201cThe continued strikes on energy infrastructure clearly represent a worrying shift in the conflict driving the latest volatility.\u201d<\/p>\n