London Daily

Focus on the big picture.
Friday, Aug 14, 2026

FTSE 100 slumps and gas prices surge as Russia crisis adds to cocktail of anxieties for markets

FTSE 100 slumps and gas prices surge as Russia crisis adds to cocktail of anxieties for markets

Market experts say the Russia-Ukraine tensions are starting to add to the wider volatility largely emanating from the United States where inflation is taking centre stage ahead of a key central bank meeting this week.

The FTSE 100 has seen £53bn wiped off its value amid a global markets sell-off as tensions between Russia and Ukraine add to a cocktail of investor worries.

Trading screens in London, Paris and Milan turned red while wholesale gas prices also rose sharply and Bitcoin plunged.

Britain's leading share index fell by 2.6%, or just under 197 points, to 7297 - leaving it below its level at the end of 2021 after giving up gains enjoyed during a brisk start to this year.


It was the FTSE 100's biggest one-day fall since November, when fears about the impact of the Omicron variant were taking hold.

The market volatility builds on heavy sell-offs that saw the US Nasdaq index come under particular pressure last week and endure its worst week of trading since March 2020.

That was largely down to fears of overinflated tech firm values and an accelerated pace of interest rate rises ahead as the Federal Reserve prepares to meet in the face of surging inflation.

The start of the new trading week saw a sell-off in Europe gather pace - building on losses on Friday linked to the US rate and tech rout.

The flight from risk also saw Bitcoin fall to below $33,000 for the first time since July last year - less than half the $69,000 all-time high reached last November - though it later clawed back some of the losses.

The pound came under pressure too and was a cent down on the dollar at just above $1.34 as the so-called safe haven US currency found support.


The FTSE 100's fall, led by mining and housebuilding stocks, built on the losses of 1.2% witnessed on Friday while the domestically-focused FTSE 250 was down by 3.6%.

Airlines were hard hit too amid the global tensions, despite the announcement of a further easing of travel testing requirements for UK arrivals - with British Airways owner International Airlines Group losing 6.5%.

Percentage falls in France, Germany and Italy on Monday were even sharper than in London, with stock indices down by around 4%.

Trading in New York initially also saw further falls to add to last week's sell-off - with the tech-heavy Nasdaq again seeing the worst of the pressure as it dived nearly 5% and the broader-based S&P 500 lost around 4%.

Later, Wall Street stocks fought back however and ended the day in positive territory.

Market analysts pointed to a growing influence from the Russia-Ukraine tensions.

It was evident in wholesale gas prices, which rose across Europe on Monday amid no sign that the stand-off was closer to a diplomatic solution.

NATO revealed it was bolstering its air and sea forces in the region while the UK joined the US in pulling out some of their embassy staff from Kyiv.

The UK wholesale gas contract for next day delivery was as much as 20% up on Monday - though at 228p per therm, it remains well down on the unprecedented highs above 400p witnessed last year.

Those additional costs are, without government intervention, tipped to raise the energy price cap by 50% for UK households from April.

Bjarne Schieldrop, commodities analyst at SEB, told Sky's Ian King Live that Europe was already paying a heavy price for the spat with Russia over Ukraine, as Moscow holds the key to wholesale costs through its 40% share of gas supply to the EU.

Asked whether Russia had been deliberately withholding supplies as a bargaining chip, he said of plunging gas pipeline volumes: "[The] increasing assumption these days is that this is sort of gaming from the Russian side with respect to Ukraine."

Meanwhile in the UK, the wider energy network is showing signs of strain often seen in the winter - with National Grid issuing a notice asking electricity suppliers to bump up capacity to make sure the system has enough spare "margin" in place, which was quickly withdrawn as the market responded.

It is the spectre of inflation that has harmed market sentiment - particularly in the US where the central bank's crisis era of support is being wound down.

All the major US indices have been tumbling from record highs this year as the pace of price increases threaten to dampen both consumer and corporate demand.

AJ Bell's investment director, Russ Mould, wrote: "The Federal Reserve is meeting on Wednesday amid expectations of a first interest rate hike in March and more increases to come this year than had previously been pencilled in.

"This has been signalled by a rise in bond yields. The hardening of monetary policy has negative implications for the valuations of tech stocks and they have seen big slumps in recent weeks.

"Perhaps Apple, Microsoft and Tesla can come to the rescue with some knockout numbers when they report this week. On the other hand, a series of disappointing updates from these technology titans would only undermine sentiment further.

"The shifting market landscape is further complicated by the increasingly noisy sabre rattling by Russia on the Ukrainian border.

"Escalation to a full armed conflict is likely to prompt market volatility and potentially a further surge in energy prices - only adding to the current inflationary pressures."

Newsletter

Related Articles

0:00
0:00
Close
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
×