FTSE 100 Slips as Bailey Flags Inflation Risks Amid Oil Price Surge

London's FTSE 100 index closed down 10.47 points at 10,811.66 on Tuesday, while the Bank of England Governor Andrew Bailey warned of upside inflation risks amid elevated energy prices.

Bailey stated that the market curve is fair given global inflationary risks are tilted to the upside and that energy prices could rise further due to the US-Iran conflict.

Oil prices rose after Iran-allied militants attacked Saudi Arabian energy facilities, forcing a temporary halt in some operations. Brent oil was quoted at USD98.00 a barrel at the time of the London equities close on Tuesday, up from USD97.89 late Monday.