Donald Trump’s war on Iran saw the FTSE 100 complete its worst month since the pandemic yesterday.
London’s leading share index fell by 6.7 per cent over the course of March, the biggest fall since Covid lockdowns began in March 2020.
The FTSE had closed at an all-time high of 10,911 at the end of February but has since lost more than 700 points to close the month at 10,176.
That has knocked around £176billion off the value of its constituent companies.
However, the FTSE has fought back from a low of less than 9,700 seen last week and was up on the day yesterday, finishing 48 points, or 0.5 per cent higher.
Like other global indices, the London market has been hit by the impact of a global energy shock as oil and gas prices soar.
Yesterday, a barrel of Brent crude was trading at as high as $119 a barrel. The oil price has rocketed by 63 per cent over the course of March from $72 before the war – its biggest monthly leap on record.
Blue chips hit: The FTSE 100 fell by 6.7%over the course of March, the biggest fall since Covid lockdowns began in March 2020
That has walloped airline stocks such as British Airways owner International Airlines Group – down 17 per cent over the month.
But oil majors Shell and BP have been among the few winners, adding 17 per cent and 27 per cent in March.
Meanwhile, the pound has been punished, yesterday slipping below $1.32 versus the dollar, its lowest level since last November.
And UK borrowing costs have also come under huge pressure, with yields on ten-year gilts up 16 per cent in March, their sharpest monthly rise since Liz Truss’s disastrous mini-Budget of 2022.
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.