FTSE 100 Slides 1.7% as Middle East Tensions Flare

The benchmark FTSE 100 closed at 10,489.04 points, shedding 1.7% of its value in a rapid response to the news. The FTSE 250 mirrored this volatility, falling 1.5%—its steepest decline since March. Traders pivoted quickly to commodities, driving oil prices higher as the market priced in the risk of disrupted supply chains and prolonged geopolitical friction. This reaction highlights the deep sensitivity of global markets to the fragile status of Middle Eastern diplomatic relations, as confidence in a stable energy outlook evaporates.