FTSE 100 ends lower as oil surges past $105 on fears the US is planning Iran strikes

From the Newshound archive · first published 8 October 2026.

London's blue chips fell 0.2% to 10,441.60 on Thursday after Brent crude surged more than 3% to $105.57 a barrel, lifted by reports that the White House has asked the Pentagon to draw up strike options against Iranian targets ahead of November's US midterm elections. A separate Axios report said Central Command has received orders to complete planning for renewed combat operations. Yemen's Houthis also fired missiles at Riyadh airport and told oil facility workers to leave as the broader conflict intensified.

Tesco bucked the sell-off, rising 5.2% after half-year results analysts called 'a lot to like', topping the FTSE 100 leaderboard.

A tropical storm building near the Gulf of Mexico forced Chevron and Shell to cut offshore output, adding a 25% regional production shutdown to the supply squeeze.

Analysts warn a potential 25-30% energy price cap rise in January could trigger a fresh cost-of-living crisis if oil stays elevated.