Finance
London Equities Set for Third Straight Weekly Fall as Mideast War Drags On
Published by Global Banking & Finance Review®
Posted on March 20, 2026
2 min readLast updated: March 20, 2026
London Equities Face Third Weekly Loss Amid Middle East Tensions and Inflation Concerns
Market Overview and Key Drivers
FTSE Performance Amid Geopolitical and Economic Pressures
March 20 (Reuters) - London's FTSE100 marginally fell on Friday, set for a third consecutive weekly decline, as the escalating Middle East war and surging oil prices deepened inflation fears and cemented expectations for the Bank of England to hike interest rates.
The blue-chip FTSE 100 fell 0.1% by 1039 GMT, while the mid-cap FTSE 250 was up 0.2%.
Both indexes swung between losses and gains through the session, reflecting the choppy and uncertain mood across markets.
Oil Prices and Energy Sector Impact
Oil prices nudged higher on Friday despite leading European nations, Japan and Canada offering to join efforts to secure safe passage for ships through the Strait of Hormuz, and the U.S. outlining moves to boost supply. [O/R]
UK's energy stocks slipped 0.9%, but was still around record-high levels.
Heavyweight pharma stocks fell 0.3%.
Bank of England Policy and Inflation Concerns
Interest Rate Outlook
The BoE held rates at 3.75% at Thursday's policy meeting. Its warning that inflation posed a bigger risk than slowing growth pushed traders to price in a roughly 60% chance of a 25-basis-point hike by April and potentially up to three quarter-point increases by year-end.
Fiscal Challenges and Borrowing
Fresh fiscal concerns rose after Britain borrowed far more than expected in February, partly due to volatile debt-interest payments, just as the Iran conflict drove up funding costs and fuelled calls for higher public spending.
Company Movers and Sector Highlights
Positive Movers
Unilever
Among other movers, Unilever shares inched 0.9% up after the consumer goods giant confirmed it was in talks with U.S.-based McCormick & Company about selling its foods business.
Negative Movers
Smiths Group
Smiths Group dropped 7.9% after the engineering group missed half‑year organic revenue forecasts.
JD Wetherspoon
JD Wetherspoon fell 12.3% after the pub chain said that its full-year profits may fall below market estimates after higher energy costs and wage-related taxes dragged first-half profit down by 37%.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair)
References
Frequently Asked Questions about London equities set for third straight weekly fall as Mideast war drags on
1Why are London equities falling for a third consecutive week?
London equities are declining due to escalating Middle East conflict, rising oil prices, and inflation fears impacting investor sentiment.
2How did the FTSE 100 and FTSE 250 perform in the latest session?
The FTSE 100 fell 0.1% while the FTSE 250 rose 0.2%, with both indexes fluctuating throughout the session.
3What is the current expectation regarding Bank of England interest rates?
Traders now expect a roughly 60% chance of a 25-basis-point hike by April and potentially up to three quarter-point increases by year-end.
4How are oil prices and the Middle East conflict affecting UK markets?
Rising oil prices and the Middle East conflict are fueling inflation fears and raising funding costs, contributing to market uncertainty.
5Which major UK companies moved significantly and why?
Unilever shares rose after sale talks, Smiths Group dropped on missed revenue forecasts, and JD Wetherspoon fell after profit warnings.
