UK Stocks Plummet as Oil Prices Soar and Inflation Fears Bite

The UK's main stock indexes closed at more than one-month lows on Thursday as crude oil prices continued to rise, fueling inflation worries. The FTSE 100 index fell 0.57% to 10,608.92 points, its fifth straight day of declines. This drop is linked to the increasing Brent crude futures price, which has surpassed $105 a barrel due to US and Iran's attacks on shipping.

The U.S. producer prices reading further boosted chances of a future interest rate hike. The European Central Bank raised interest rates for the second time this year on Thursday. Energy stocks offered some respite, rising 1%, with Shell and BP extending their rally.

However, industrial metal miners dropped 4%, the biggest drag on the index, as concerns about refined copper tariffs continue to rise. Rate-sensitive homebuilders shed 2.15% as government bond yields climbed across the board.