Oil Shock Sends FTSE 100 Plummeting Amid Rising Borrowing Costs

The FTSE 100 plummeted to a two-month low on Tuesday as rising oil prices sent UK borrowing costs soaring, weighing heavily on London's heavyweight energy shares.

The blue-chip index dropped 0.59% to 10,634.49 by 1000 GMT, while the FTSE 250 lost 0.46%. Banks and investment firms led the decline, with Standard Chartered down 1.7% and Aberdeen off 2.6%.

Precious and industrial-metals miners also weakened as gold and copper prices fell.

AJ Bell's Danni Hewson noted that rising oil prices were becoming harder for UK consumers to absorb, would be firmly in focus when the Bank of England meets this week, and had sharply increased expectations for a near-term policy move.