London Daily

Focus on the big picture.
Wednesday, Feb 25, 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
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
United States National Parks See Noticeable Drop in Visitors from Canada, U.K. and Australia
UK, Australia, Canada and New Zealand Escalate Sanctions on Russia as Ukraine War Marks Four Years
I Gave Andrew a Nude Massage Inside Buckingham Palace
UK Economy Faces Acute Strain as Trump’s Global Tariff Reshapes Trade Landscape
UK Signals Retaliation Is Possible as New US Tariff Policy Threatens Trade Stability
British Police Arrest Former Ambassador Peter Mandelson in Epstein-Related Misconduct Probe
Australia Officially Supports Proposal to Remove Andrew Mountbatten-Windsor from Royal Succession
Victorian Premier Jacinta Allan remains silent on ISIS brides' resettlement plans in Melbourne
Former UK Ambassador Peter Mandelson Arrested in Connection with Jeffrey Epstein
Jacob Rees Mogg afraid to talk about Peter Mandelson arrest on “suspicion of misconduct in a public office” (Pedophilia, corruption, etc.)
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
President Trump warns countries against abandoning recent trade deals with the US
Diverging Polls Show Mixed Signals on UK Economic Revival as Confidence Remains Fragile
Spotify Expands AI-Driven ‘Prompted Playlists’ Feature to the United Kingdom and Other Markets
Greens and Reform UK Surge in Manchester By-Election, Threatening Labour’s Historic Stronghold
UK Businesses Push for Closer European Trade Links Amid Renewed US Tariff Uncertainty
Deloitte Global Overhaul Sparks Leadership Contest in the United Kingdom
University of Kentucky and Microsoft to Showcase Campus-Wide AI Innovation
UK Food System Faces Acute Vulnerability to Shocks, Experts Warn
Reform UK’s Proposed ICE-Style Deportation Scheme Triggers Sharp Backlash
U.S. Global Tariff Push Leaves Britain, Australia and Others Facing Higher Costs and Trade Strain
UK Police Officers Guarded 2010 Epstein Dinner Attended by Prince Andrew, Reports Say
US Trade Representative Affirms Commitment to Existing Tariff Agreements with UK and Other Partners
Activists at the Louvre hung a framed Reuters photograph of Andrew Mountbatten-Windsor slumped in the back of a car leaving a police station on the day of his arrest
The royal biographer said that he expected the police to 'look at the money trail' - including Sarah Ferguson borrowing money from Epstein
A Protestor screams in NYC: “Bill Gates is on the Epstein’s List…”
FBI and Secret Service Hold Press Conference After Shooting Incident at Mar-a-Lago
Mark Zuckerberg Testifies in Trial Over Social Media's Impact on Children's Mental Health
Maggie Oliver exposes Keir Starmer using letters to close child rapists investigations
Kouri Richie's wrote a children’s book to help her sons grieve the death of their father. Now she’ll stand trial for his murder
New York Braces for Major Snowstorm With Up to 18 Inches Forecast and Blizzard Warnings Issued
Mexican Military Kills CJNG Leader Nemesio Oseguera Cervantes as Violence Erupts Across Jalisco
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
×