FTSE 100 Plunges as Hormuz Tensions and BoE Rate Concerns Weigh

The FTSE 100 index started trading lower on September 18, 2026, after two days of gains. It fell by about 0.3% to 10,785 points in early trading sessions, down from Thursday's close at 10,816.14. This decline was attributed to investor concerns over the Bank of England's interest rate decision and developments in the Middle East region.

The recent turmoil in the Middle East has resulted in disruptions to energy supplies, causing a rise in energy prices. Although oil prices fell sharply on Friday, with Brent crude dropping by more than 2% to $102.54 per barrel and West Texas Intermediate declining below $100, investors remained watchful of any possible supply disruptions, especially at the Strait of Hormuz.

The Bank of England's decision to maintain Bank Rate at 3.75%, despite three committee members favoring a 0.25% increase, also contributed to investor concerns about inflation in the United Kingdom, which rose to 3.1% in August.