FTSE 100 Ends Week Lower as Middle East Uncertainty Weighs on Markets
London's FTSE 100 index closed the week on a downbeat note on 24 April 2026, falling 0.75% to 10,379.08 points as investors remained cautious amid ongoing uncertainty over the Iran conflict and its impact on global energy supplies.
The decline reflected broader market sentiment, with traders closely monitoring developments in peace talks and the continued closure of the Strait of Hormuz, which has kept oil prices elevated and investor confidence fragile.
Background
The FTSE 100 had reached the milestone of 10,000 points for the first time in January 2026, buoyed by optimism about the UK economy and global growth prospects. However, the outbreak of the Iran conflict in late February has weighed heavily on markets, with energy price volatility and geopolitical uncertainty creating a challenging environment for investors.
Key Developments
On 24 April, the FTSE 100 closed at 10,379.08, down 0.75% on the day. Brent crude oil was trading at around $98.58 per barrel, remaining elevated due to persistent supply concerns related to the Strait of Hormuz closure. Sterling remained relatively stable against the US dollar at approximately 1.3530. In commodity markets, gold prices held near recent highs as investors sought safe-haven assets. Several major UK retailers, including Sainsbury's and WH Smith, saw their shares fall after issuing warnings about the potential impact of the conflict on their operations. In contrast, defence sector stocks continued to outperform, reflecting increased government spending on military capabilities.
Why It Matters
The performance of the FTSE 100 is a key barometer of confidence in the UK economy and the health of its major companies. Sustained weakness in the index can affect pension funds, savings, and investment, with knock-on effects for the broader economy. The divergence between sectors — with energy and defence outperforming while retail and leisure struggle — reflects the uneven impact of the conflict on different parts of the economy.
What's Next
Markets will be watching closely for any signs of progress in peace negotiations between the US and Iran, which could ease pressure on oil prices and boost investor confidence. Key economic data releases next week, including UK GDP figures and Bank of England commentary, will also be closely scrutinised. Analysts warn that if the conflict continues to drag on, the FTSE 100 could face further downward pressure in the weeks ahead. For the latest market data, see Reuters.
