Finance
UK's FTSE 100 Rises on Energy, Banks Boost as Investors Await BoE Decision
Published by Global Banking & Finance Review®
Posted on March 17, 2026
2 min readLast updated: March 17, 2026
Quick Summary
FTSE 100 rose 0.6% on March 17, supported by energy and bank gains amid Middle East tensions and ahead of a Bank of England decision. Markets shifted rate-cut expectations to later in 2026, while Close Brothers dropped on job‑cut news and Trustpilot surged on strong profits.
FTSE 100 Rises with Energy, Banks Advancing Ahead of Bank of England Decision
Market Overview and Key Drivers
FTSE 100 and FTSE 250 Performance
March 17 (Reuters) - The UK's FTSE 100 inched higher on Tuesday on the back of gains in energy and heavyweight financials even as the conflict in the Middle East raged on, while investors awaited the Bank of England's interest rate decision this week.
The blue-chip FTSE 100 rose 0.6% by 1042 GMT, while the mid-cap FTSE 250 rose 0.1%.
Geopolitical Tensions and Oil Prices
Impact of Middle East Conflict
Iran expanded its strikes on the UAE as the U.S.-Israel war with Tehran entered its third week, disrupting Gulf oil flows through the Strait of Hormuz. U.S. allies also refused President Donald Trump's request to help reopen the crucial waterway, sending oil prices 4% higher. [O/R]
Sector Performance
Energy Sector Gains
The energy sector rose 1.1%, trading at a record high. Majors BP and Shell advanced over 1% each, clawing back some ground lost on Monday.
Financials and Utilities
Heavyweight banks gained 0.6%, while utilities followed with a 1.4% rise.
Interest Rate Outlook
Bank of England Decision
British borrowing costs dipped for a second day but remained well above levels seen before the Iran war, with markets now pricing roughly 50% odds of a Bank of England hike in November.
Global Central Bank Decisions
Investors' focus this week will be on interest rate decisions in the UK, the U.S., and Europe and comments from policymakers on how they intend to navigate the potential energy-driven inflationary pressures.
Economists' Expectations
Most economists polled by Reuters abandoned their rate cut calls for March, now expecting a 25-basis-point cut in April or June. J.P. Morgan, however, expects the BoE to keep rates unchanged through 2026, with the next cut only in the first quarter of 2027.
Notable Stock Movers
Close Brothers
Among individual stocks, Close Brothers fell 10.4% to the bottom of the mid-cap index after the lender said it will cut 600 roles by fiscal 2027.
Trustpilot
Trustpilot jumped 23% after the global online review platform said it had quadrupled its annual profit.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Leroy Leo)
Key Takeaways
- •Energy and heavyweight banks fuelled FTSE 100 gains as oil prices rose due to Middle East conflict and disruptions at Strait of Hormuz.
- •Markets now expect BoE rate cuts in April/June instead of March; JPMorgan pegs first cut at early‑2027, while most economists delayed.
- •Individual movers: Close Brothers dropped ~10% on plans to cut 600 roles by 2027; Trustpilot jumped ~23% after reporting quadrupled annual profit.
Frequently Asked Questions about UK's FTSE 100 rises on energy, banks boost as investors await BoE decision
1What drove the FTSE 100 higher today?
Gains in energy and heavyweight financial stocks fueled the FTSE 100's rise, despite ongoing conflict in the Middle East.
2How did the energy sector perform on the FTSE 100?
The energy sector rose 1.1%, reaching a record high, with BP and Shell both advancing over 1%.
3What is the market expectation for the Bank of England's next move?
Markets are pricing roughly 50% odds of a Bank of England interest rate hike in November, amid elevated borrowing costs.
4How have oil prices reacted to the Middle East conflict?
Disruption in Gulf oil flows sent oil prices up by 4%, impacting sectors tied to energy and inflation expectations.
5Which individual stocks saw significant movement?
Close Brothers fell 10.4% after announcing job cuts, while Trustpilot jumped 23% on quadrupled annual profit.
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