FTSE 100 Slumps on Middle East Tensions and BoE Rate Worries

The FTSE 100 index fell 1.25% to 10,681.30 on Friday, erasing much of Thursday's sharp rally.

The decline came despite a strong session on Thursday when the Bank of England kept its benchmark interest rate unchanged and announced it would pause gilt sales for six months while halting long-dated gilt sales entirely.

The measures pushed long-dated gilt yields sharply lower, fueling a rally that analysts described as carrying genuine macroeconomic support rather than reflecting purely technical trading factors.

However, the rally proved short-lived. The index opened Friday roughly 0.3% lower at 10,785 before losses deepened through the session, ultimately dragging the FTSE 100 down by more than 1% by the time markets closed for the week.