FTSE 100 hits record high as oil jumps on US-Iran tension

UK stocks outperform European and US peers amid geopolitical uncertainty

Feb. 27, 2026 at 5:18pm

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The FTSE 100 index ended at a record high on Friday, up 0.6% at 10,910.55, as the UK market outperformed its European and US counterparts. The gains came despite renewed losses on Wall Street as investors weighed stronger-than-forecast wholesale inflation data and rising tension between the US and Iran. Oil prices jumped as Iran said the US would have to drop its "excessive demands" to reach a deal, tempering optimism from recent talks.

Why it matters

The FTSE 100's record-breaking performance in the first two months of 2026 suggests UK stocks could be in for another strong year, building on the gains seen in 2025. However, the geopolitical uncertainty surrounding the US-Iran relationship and its impact on oil prices could pose challenges for certain sectors like airlines.

The details

The FTSE 100 hit an intraday high of 10,934.94 before closing at 10,910.55, up 63.85 points or 0.6%. The FTSE 250 and AIM All-Share also posted gains. London's performance came despite losses on Wall Street, where the Dow Jones, S&P 500, and Nasdaq all declined. The producer price index in the US rose 0.5% in January, faster than expected, while core PPI accelerated to 3.8% annually. Oil prices jumped as Iran said the US would have to drop its "excessive demands" to reach a deal, tempering optimism from recent talks. This supported energy stocks like BP and Shell, but put pressure on airlines like IAG and easyJet.

  • The FTSE 100 hit a record intraday high of 10,934.94 on Friday.
  • The FTSE 100 closed at a record high of 10,910.55 on Friday.

The players

FTSE 100

The benchmark stock market index of the 100 largest companies listed on the London Stock Exchange.

Russ Mould

Investment director at AJ Bell.

Donald Trump

The President of the United States.

Iran

A country in the Middle East that has been in conflict with the United States.

Bank of America

An American multinational investment bank and financial services company.

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What’s next

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The takeaway

The FTSE 100's record-breaking performance in the first two months of 2026 suggests UK stocks could be in for another strong year, but the geopolitical uncertainty surrounding the US-Iran relationship and its impact on oil prices could pose challenges for certain sectors like airlines.