United Kingdom: FTSE 100 Hits 2026 Low on Oil Surge, Rate Hike Fears.

The FTSE 100 dropped more than 1% on Friday to its lowest level this year as rising oil prices and growing expectations of rate hikes weighed on sentiment, with investors concerned that higher energy costs could trigger an inflation spiral. The Bank of England’s more hawkish tone has reinforced the likelihood of tighter policy. Banking stocks declined, with HSBC down 1.8%, Lloyds 1.6% and Barclays 2%, while oil majors Shell and BP fell 1% and 3.3%. Healthcare names AstraZeneca and GSK also slipped, alongside heavyweights Rolls Royce, BAT, Rio Tinto and Glencore, while BAE Systems lost 3%. Travel stocks offered some support, with EasyJet up nearly 2% and IAG 1.4%. The index is down about 2.7% this week, marking a third consecutive weekly loss.