Oil Price Surge Sends UK Stocks Sliding Amid Inflation Fears

UK stocks declined on Monday as Brent crude oil futures rose above $100 per barrel for the first time since July 24, according to Reuters.

The price of Brent crude has a psychological effect on the market, pushing inflation worries to serious levels and dragging down financial assets, said Dan Coatsworth, head of markets at AJ Bell.

Despite the rise in oil prices, energy stocks hit a four-month high, with BP and Shell advancing 1.5% and 1% respectively.

However, heavyweight banks such as HSBC, Barclays, and Lloyd Banking Group declined by 1.2%, 1.6%, and 1.3% respectively.

This week, investors are closely watching the US inflation report and UK economic growth data, which could influence interest rate expectations from central banks.