FTSE Subdued as Oil Volatility Bites

Energy market volatility and concerns over inflationary fallout from Iran war keep investors cautious

Mar. 12, 2026 at 12:23pm

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Stock prices in London were slightly lower at midday on Thursday, as energy market volatility and mounting concerns over the inflationary fallout from the Iran war kept investors cautious. The FTSE 100 index was down 0.2%, the FTSE 250 was down 0.2%, and the AIM all-share was down 0.3%. The conflict in the Middle East is causing the largest ever disruption to the global oil market, the International Energy Agency said, with Brent crude topping $100 a barrel earlier on Thursday after fresh attacks on shipping in the Strait of Hormuz.

Why it matters

The ongoing conflict in the Middle East and the resulting volatility in energy markets are having a significant impact on global stock markets, with investors remaining cautious amid concerns over the inflationary fallout. The disruption to oil supplies could lead to higher consumer prices in the UK, potentially affecting the country's overall economic outlook.

The details

Three more cargo ships were struck overnight in the Strait of Hormuz, which carries around one-fifth of global oil shipments. Despite 32 countries agreeing on Wednesday to release a record 400 million barrels from strategic reserves, prices climbed amid persistent tensions and uncertainty over when the conflict might ease. A sustained spike in energy prices could have a meaningful impact on UK inflation, the Office for Budget Responsibility has warned.

  • On Thursday, March 12, 2026, stock prices in London were slightly lower at midday.
  • On Wednesday, the EU executive vowed to "respond firmly" to any violation of a key tariff deal by the US after President Donald Trump announced new trade probes.
  • The US–Israel war against Iran is now in its 13th day.

The players

FTSE 100

The leading stock market index in the United Kingdom, comprising the 100 largest companies listed on the London Stock Exchange.

FTSE 250

The second-largest stock market index in the United Kingdom, comprising the 250 largest companies listed on the London Stock Exchange after the FTSE 100.

AIM all-share

The stock market index for the Alternative Investment Market (AIM), the London Stock Exchange's market for smaller and growing companies.

International Energy Agency

An autonomous intergovernmental organization that provides analysis, data, policy recommendations, and solutions on all fuels and technologies.

Office for Budget Responsibility

A non-departmental public body that provides independent economic forecasts and analysis of the UK's public finances.

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What they’re saying

“We will be seeking further clarity from the US on how the opening of this section 301 investigation would interact with" the EU-US agreement struck last year”

— Olof Gill, European Commission spokesman (marketscreener.com)

“If there's no change in the picture on prices from now on forward, we estimate something like a 1% higher level of consumer prices in the UK by the end of the year”

— David Miles, Member of the OBR's budget responsibility committee (marketscreener.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.