FTSE 100 Hits Record High as Middle East Conflict Rattles Markets

The rally highlights a sharp divide in investor behavior, where energy-heavy portfolios are benefiting from supply concerns linked to the unfolding crisis. Investors are now pivoting their focus toward imminent interest rate announcements from the Federal Reserve and the Bank of England, waiting for signals that could dictate the next phase of market volatility.

This optimism did not extend to the entire London exchange. The FTSE 250 slipped by 0.03% to close at 23,996.81 points, a decline that underscores a fragmented investor sentiment. While blue-chip stocks are finding momentum in oil-driven gains, mid-cap companies face a more cautious outlook as the market prepares for potential shifts in monetary policy.