London Daily

Focus on the big picture.
Monday, May 18, 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
'They're people from all walks of life across the UK'
EU Digital ID Claims Misstate What Brussels Can Legally Force on Member States
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
Kennedy’s Quiet War on Antidepressants Sparks Alarm Across America’s Medical Establishment
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
×