FTSE 100 Slides as Labour Crisis and Iran War Fears Hit Sentiment

The FTSE 100 has fallen sharply in Friday morning trading, dropping 1.2% to around 10,247 points, as a cocktail of domestic political turmoil and again escalating geopolitical risk sent investors heading for the exits.

The blue-chip index has underperformed its Thursday close of 10,373, extending a turbulent week for UK assets.

European peers are similarly under pressure, with Germany’s DAX sliding 1.5%, France’s CAC 40 dropping 1.2%, and the mid-cap FTSE 250 falling around 1.1%.

Thursday had offered a brief respite, with the FTSE 100 having gained 0.46% and the FTSE 250 climbing after stronger-than-expected UK GDP data for March, but those gains have quickly evaporated.

The biggest drag on Friday came from mining stocks, impacted by fears of a global growth slowdown. Antofagasta plunged 6.75%, Fresnillo fell 6.53% and Anglo American dropped 5.12% as commodity prices retreated.

Utilities also suffered, with National Grid off 3.7% and United Utilities down 4.1%. On the upside, 3i Group bounced 3.46% after steep recent losses, while BP and GSK each gained over 1%.

Two forces are driving the broader sell-off. First, UK political uncertainty intensified after Health Secretary Wes Streeting resigned on Thursday, calling openly for Prime Minister Keir Starmer to step down following Labour’s dismal local election results, sending sterling lower and 10-year gilt yields higher.

Second, the Iran war continues to choke the Strait of Hormuz, driving oil prices over higher. U.S. President Donald Trump said on Thursday evening that his patience with Iran is running out.