London close: FTSE 100 retreats from record as oil prices jump

19th Feb 2026 15:36

(Sharecast News) - UK stocks pulled back from record highs on Thursday as oil prices hit a seven-month high amid rising geopolitical tensions between the US and Iran.

The FTSE 100 finished the day down 0.6% at 10,627.04, after settling at an all-time closing high of 10,686.18 on Wednesday - its third straight record close.

Brent crude was up 2.2% at $71.86 a barrel - its highest since July 2025 - after media reports overnight stated that the US was ready for possible strikes on Iran as soon as this weekend, though President Donald Trump had yet to make a final decision on whether to carry out an attack.

Trump has repeatedly demanded Iran cease its nuclear programme and has warned he would use force if no deal was agreed. According to various news reports, the US military has assembled sufficient air and naval resources in the Middle East to launch an attack in the coming days.

Oil prices had also risen over recent days after peace talks between Russia and Ukraine ended while negotiations.

"In a quieter period for markets today news, or lack of it, around Iran is the driver for the day. Each time President Trump sounds more conciliatory the market rallies, while hints of action cause it to weaken," said Chris Beauchamp, chief market analyst at IG.

He said that Thursday's pick-up in the closely followed VIX volatility index "could go on for some time, since it is far from certain that the US will make a move, despite the extensive (and expensive) buildup around Iran".

In other news, the latest Industrial Trends survey from the Confederation of British Industry showed the downturn in the manufacturing sector eased in the three months to February, but the pipeline for activity remains poor. Output volumes fell in the period but at a slower pace than January, with a net balance of -14% this month versus -25%.

Oil stocks jump, Centrica and miners fall

London-listed oil stocks were among the day's best performers as crude prices jumped, with BP on the rise on the FTSE 100 and FTSE 250 peers Diversified Energy, Ithaca Energy and Harbour Energy all up.

In contrast, Wizz Air, easyJet and Carnival, which are sensitive to oil price movements, finished firmly lower. EasyJet, however, was also trading ex-dividend which would have weighed on the share price, as to was Barclays.

Centrica tumbled after the British Gas owner said it was pausing its share buyback programme as it reported a decline in full-year operating profit in a "challenging environment", with guidance from the energy firm also disappointing.

Rio Tinto was also under the cosh as it posted a 14% drop in full-year net profit as weak steel demand in China hit iron ore earnings, despite better prices for copper and gold. The company, which recently abandoned merger talks with rival Glencore, said net profit came in at $9.97bn in 2025 compared with $11.55bn a year earlier.

Mining peers Antofagasta and Anglo American were also in the red as markets adopted a risk-off mode.

Meanwhile, paper and packaging group Mondi slashed its dividend after a 29% slump in annual profits in 2025 and pointed to further declines in paper prices over the first quarter, though shares rose as investors welcomed a cut to capital expenditure guidance this year.

Market Movers

FTSE 100 (UKX) 10,627.04 -0.55%

FTSE 250 (MCX) 23,573.49 -0.48%

techMARK (TASX) 6,120.87 -0.85%

FTSE 100 - Risers

British American Tobacco (BATS) 4,473.00p 2.97%

Relx plc (REL) 2,293.00p 2.64%

BAE Systems (BA.) 2,163.00p 2.51%

BP (BP.) 479.00p 2.02%

Babcock International Group (BAB) 1,397.00p 1.53%

Diageo (DGE) 1,781.50p 1.16%

Mondi (MNDI) 935.00p 1.15%

CRH (CDI) (CRH) 9,308.00p 1.02%

Experian (EXPN) 2,576.00p 0.98%

LondonMetric Property (LMP) 213.40p 0.76%

FTSE 100 - Fallers

Centrica (CNA) 187.05p -4.57%

Flutter Entertainment (DI) (FLTR) 9,040.00p -3.99%

Barclays (BARC) 467.95p -3.72%

Rio Tinto (RIO) 7,118.00p -3.67%

easyJet (EZJ) 475.50p -3.41%

Metlen Energy & Metals (MTLN) 34.95p -3.32%

Antofagasta (ANTO) 3,875.00p -3.13%

Anglo American (AAL) 3,552.00p -2.98%

Lloyds Banking Group (LLOY) 102.00p -2.49%

Melrose Industries (MRO) 665.40p -2.41%

FTSE 250 - Risers

Diversified Energy Company (DI) (DEC) 1,040.00p 5.69%

Ocado Group (OCDO) 235.50p 3.29%

Trainline (TRN) 202.60p 2.95%

Playtech (PTEC) 348.50p 2.80%

Trustpilot Group (TRST) 138.00p 2.76%

Ithaca Energy (ITH) 205.15p 2.68%

Harbour Energy (HBR) 228.40p 2.33%

Coats Group (COA) 89.80p 1.93%

Hochschild Mining (HOC) 728.00p 1.75%

WPP (WPP) 275.70p 1.66%

FTSE 250 - Fallers

Raspberry PI Holdings (RPI) 381.80p -6.88%

Wizz Air Holdings (WIZZ) 1,309.00p -5.69%

Bridgepoint Group (Reg S) (BPT) 260.20p -3.84%

Ceres Power Holdings (CWR) 293.00p -3.68%

Dr. Martens (DOCS) 67.25p -3.52%

HGCapital Trust (HGT) 439.00p -3.20%

SDCL Efficiency Income Trust (SEIT) 47.20p -2.98%

NCC Group (NCC) 131.80p -2.95%

BioPharma Credit (BPCR) 0.94p -2.89%

Plus500 Ltd (DI) (PLUS) 4,338.00p -2.74%