London open: FTSE falls as oil prices rise again; defence firms rally

12th Mar 2026 08:17

(Sharecast News) - London stocks fell in early trade on Thursday as oil prices rose again amid escalating tensions in the Middle East.

At 0840 GMT, the FTSE 100 was down 0.6% at 10,292.94. Brent crude was up 5.8% at $97.35 a barrel, having topped $100 earlier, while West Texas Intermediate was 5.2% higher at $91.80.

Kathleen Brooks, research director at XTB, said: "The oil price surged above $100 per barrel at one stage on Thursday morning, although it is backing away from this level as we move through the morning. Reports that more ships were the targets of Iranian drones outside of the Strait of Hormuz, is keeping upward pressure on commodities. Two ships were struck off the coast of Iraq, and Oman's oil terminal, Mina Al Fahal, has also been closed as a precaution. This shows how the conflict is now spreading and threatening the few ports that have remained open throughout this crisis.

"Brent crude surged to a high of $101.59 per barrel earlier on Thursday, although it is currently trading below $98, still a 6% jump this morning. The conflict has intensified this week, and the longer the oil price remains elevated, the more damaging and long-lasting the inflation shock will be for the global economy.

"We mentioned earlier this week that when oil prices hit $100 per barrel, they tend to be sticky around this level. Back in 2022, WTI crude stayed above $100 for 87 days, thus the market needs to be prepared for elevated oil prices for the long haul."

In equity markets, banks and financials were under the cosh, with HSBC, Schroders, Lloyds and Prudential among the worst performers on the FTSE 100, while budget airline easyJet also fell.

Computacenter was in the red even as it reported a jump in full-year profit and revenue and hailed an "outstanding" year for the North American business.

Informa lost ground even as it posted a jump in annual revenues and profits, fuelled by strong demand for live events, while investment manager M&G fell after it reported flat full-year profits, ahead of expectations, as its net flows turned positive.

Safety equipment manufacturer Halma was weaker as it reiterated full-year guidance despite uncertain market conditions.

Online rail ticket platform Trainline slumped as it said group adjusted core profit growth was set to be within its previously-upgraded guidance range of 10% to 13%, driven by focused marketing spend and cost controls.

Homeware retailer Dunelm was under pressure as it traded without entitlement to the dividend, while Bodycote was knocked lower by a downgrade to 'sector perform' from 'outperform' at RBC Capital Markets.

On The Beach tumbled as the holiday company temporarily suspended its full-year profit outlook, citing falling demand for Middle East destinations due to the US-Israel war on Iran.

On the upside, defence firms rallied, with BAE Systems, Babcock, Qinetiq and Chemring all higher.

TP Icap gained as it hailed record full-year results, with adjusted EBIT ahead of expectations, and announced an £80m share buyback.

Market Movers

FTSE 100 (UKX) 10,292.94 -0.59%

FTSE 250 (MCX) 22,291.62 -0.40%

techMARK (TASX) 5,829.05 -0.33%

FTSE 100 - Risers

BAE Systems (BA.) 2,291.00p 2.83%

Babcock International Group (BAB) 1,421.00p 2.39%

Flutter Entertainment (DI) (FLTR) 8,202.00p 1.89%

Rentokil Initial (RTO) 475.70p 1.80%

Centrica (CNA) 202.80p 1.10%

Glencore (GLEN) 526.80p 1.04%

Legal & General Group (LGEN) 242.70p 1.00%

SSE (SSE) 2,642.00p 0.84%

Fresnillo (FRES) 3,688.00p 0.82%

Melrose Industries (MRO) 538.00p 0.75%

FTSE 100 - Fallers

HSBC Holdings (HSBA) 1,218.80p -3.74%

Schroders (SDR) 572.00p -2.47%

Persimmon (PSN) 1,241.50p -2.13%

Diageo (DGE) 1,465.00p -1.84%

easyJet (EZJ) 391.00p -1.66%

LondonMetric Property (LMP) 194.60p -1.57%

Metlen Energy & Metals (MTLN) 35.90p -1.31%

Lloyds Banking Group (LLOY) 97.60p -1.21%

Prudential (PRU) 1,084.50p -1.18%

Entain (ENT) 575.80p -1.10%

FTSE 250 - Risers

TP Icap Group (TCAP) 260.00p 5.91%

Hochschild Mining (HOC) 674.00p 3.77%

Vistry Group (VTY) 413.40p 3.10%

QinetiQ Group (QQ.) 519.00p 2.98%

Avon Technologies (AVON) 1,866.00p 2.68%

Chemring Group (CHG) 552.00p 2.60%

Ithaca Energy (ITH) 249.00p 2.15%

Bluefield Solar Income Fund Limited (BSIF) 80.50p 1.90%

Harbour Energy (HBR) 275.00p 1.55%

Chrysalis Investments Limited NPV (CHRY) 90.10p 1.46%

FTSE 250 - Fallers

Dunelm Group (DNLM) 870.00p -5.38%

Helios Towers (HTWS) 173.20p -4.96%

Bodycote (BOY) 728.00p -4.58%

Blackrock Throgmorton Trust (THRG) 566.00p -4.10%

NCC Group (NCC) 127.20p -3.34%

Raspberry PI Holdings (RPI) 300.30p -3.32%

Shawbrook Group (SHAW) 397.75p -3.22%

Safestore Holdings (SAFE) 704.00p -3.03%

Rank Group (RNK) 90.00p -3.02%

Savills (SVS) 964.00p -2.69%