Finance
UK's FTSE 100 Flat as Middle East Uncertainty Persists; Inflation Rises
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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London’s FTSE 100 was flat as geopolitical tensions in the Middle East persisted and UK inflation rose to 3.3% in March, rattling investor sentiment and underscoring pressure on the Bank of England’s policy outlook.
FTSE 100 Steady as Middle East Uncertainty and UK Inflation Shape Markets
Market Overview and Key Influences
April 22 (Reuters) - London's benchmark index FTSE 100 was subdued on Wednesday as investors monitored the fragile truce in the Middle East and assessed Britain's March inflation data.
The blue-chip FTSE 100 index edged down 0.03% to 10,495.22 points by 1048 GMT, while the midcap FTSE 250 edged up 0.2%.
Middle East Tensions and Oil Price Impact
Lingering doubts over peace in the Middle East weighed on sentiment, despite U.S. President Donald Trump extending the ceasefire with Iran, with uncertainty persisting over whether Iran or Israel would uphold the deal.
Oil Market Reactions
• Oil prices jumped on Wednesday, with Brent crude rising above $100 a barrel, following reports that at least three container ships were hit by gunfire in the Strait of Hormuz.
Sectoral Impact: Airlines and Oil Majors
• The rise in crude prices weighed on airline stocks with British Airways owner IAG down 2.1%, EasyJet dipping 1.6% and Wizz Air losing 1.3%, respectively.
• Oil majors BP and Shell rose 1.9% and 0.8%, respectively.
• Miners Fresnillo, Rio Tinto, Glencore and Anglo American gained more than 1%, tracking a rise in prices of precious and base metals.
UK Inflation Data and Corporate Movers
Inflation Trends
• Official data showed British consumer price inflation rose to 3.3% in March from 3% in February, underscoring the Iran war's impact on price levels.
Expert Commentary
• "The CPI figures confirm that the supply chain and energy pressures are beginning to bite and the Bank of England's room for manoeuvre is narrowing fast," said Nick Saunders, CEO of Webull UK in a note.
Company Performance Highlights
• Reckitt, which makes Dettol soap and Durex condoms, missed quarterly like-for-like revenue estimates, pushing shares down 6.2%.
• Business supplies distributor Bunzl gained 3% after posting a rise in first-quarter revenue.
• Stocks of wealth-managing firms gained after Quilter reported record first-quarter inflows: Quilter rose 4.9%, Liontrust Asset Management was up 0.7%, and Aberdeen advanced 0.4%.
(Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara)
Key Takeaways
- •FTSE 100 barely budged despite slight mid‑cap gains; investor caution remains amid Iran‑Israel ceasefire uncertainties and rising oil prices
- •Brent crude surged past $100/barrel after attacks in the Strait of Hormuz, pressuring airlines while boosting energy and mining stocks
- •UK’s annual CPI inflation climbed to 3.3% in March from 3.0% in February, narrowing the Bank of England’s room for manoeuvre as cost‑of‑living pressures mount
Frequently Asked Questions about UK's FTSE 100 flat as Middle East uncertainty persists; inflation rises
1Why did the FTSE 100 remain flat today?
The FTSE 100 stayed flat as investors reacted to ongoing Middle East uncertainty and rising UK inflation in March.
2How did Middle East tensions affect the UK stock market?
Concerns about the fragile truce in the Middle East impacted market sentiment and led to a surge in oil prices, affecting several FTSE sectors.
3Which sectors were most impacted by oil price changes?
Airline stocks declined due to higher oil prices, while oil majors and mining stocks gained from rising commodity prices.
4What was the UK inflation rate in March?
UK consumer price inflation rose to 3.3% in March from 3% in February, driven by increased energy and supply costs.
5Which companies had significant stock movements?
Reckitt dropped 6.2% after missing revenue estimates, while Bunzl and wealth-managing firms like Quilter saw notable gains.
