The FTSE 100 declined, alongside other European indices, on Friday morning after Israeli airstrikes on Iran, escalating tensions in the Middle East.
The blue-chip index is currently down by around 57.70 points, or 0.65%, to reach 8,827.22. Meanwhile, in Germany, the DAX has declined 1.2%, France’s CAC 40 is down 0.9%, and the Spanish IBEX 35 has fallen 1.4%.
The geopolitical development immediately impacted oil prices, which saw a significant surge.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Consequently, major energy firms listed on the FTSE 100 climbed. Shell is up around 1.7%, while BP has gained just over 2%, as investors anticipated higher revenues from increased crude prices.
Both Brent crude oil and WTI crude oil have risen by more than 5% on Friday.
Iran is a crucial producer within OPEC, making any disruption in the region a concern for global oil supply.
Elsewhere, defence contractor BAE Systems saw its shares advance by over 3%, and gold miner Endeavour Mining rose 1.3% as gold, a traditional safe-haven asset, strengthened.
Conversely, the renewed tensions hit travel and leisure companies hard. The biggest loser in the FTSE 100 so far today is British Airways owner International Consolidated Airlines Group (IAG), which has declined 4.4%, while easyJet has dropped 3.6%, reflecting concerns about potential disruptions to international travel and consumer confidence.
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