FTSE 100 Index today: BP, Shell shares jump as most constituents slump

The FTSE 100 Index tumbled for the third consecutive day, reaching its lowest level since January 20. It retreated by over 7% from its highest point this year and is nearing its correction zone by falling by 10% from the year-to-date high. 

The Footsie Index retreat mirrored that of the other global indices, which continued their downward trend, with the German DAX falling by over 2.15%. Other European indices like CAC 40, Stoxx 50, and IBEX tumbled by over 2%.

This price action was triggered by the ongoing war in Iran that has pushed crude oil and natural gas prices to the highest level in years. Brent jumped to $120 and then pulled back to $105. Similarly, the West Texas Intermediate (WTI) jumped to $117 to the current $102.

Energy stocks led the FTSE 100 Index gains 

There were just a handful of FTSE 100 Index companies in the green on Monday. Shell, the biggest energy group in Europe, was the best-performing company, with its stock soaring by 2% to 3,200p. 

It has jumped by 46% from its lowest level in April last year and is hovering near its all-time high.

BP stock price also jumped by 1% and hit a record high of 513p. Like Shell, it has soared by over 61% from its lowest point in April last year.

These companies will likely benefit from the ongoing crisis as crude oil and natural gas prices surge. Brent, WTI, and other oil benchmarks have jumped by over 70% this year. Similarly, European gas prices have soared by 117% this year.

Energy companies like Shell and BP are among the top beneficiaries of the war as the soaring energy prices will lead to higher revenues and profits. This performance is important as most analysts were not expecting the prices to surge this fast.

The other top gainers in the FTSE 100 Index were companies like Admiral Group, Babcock International, and Compass Group.

Anglo American, Antofagasta, and Barclays led the losses 

Most companies in the FTSE 100 Index were in the red on Monday as investors embraced a risk-off sentiment.

Mining companies were among the top laggards as concerns about the Strait of Hormuz and shipping costs rose. Anglo American and Antofagasta, two major copper miners, were the top laggards, falling by over 6%.

Barclays stock dropped by 5%, even though the war will likely ensure that interest rates remain higher for longer. Other UK banks like Lloyds, NatWest, and HSBC dropped by a smaller margin.

Rolls-Royce's share price dropped by 4.8% on Monday, continuing a downward trend that has been going on in the past few weeks.

Other top laggards in the FTSE 100 Index were companies like Segro, British Land, Persimmon, Land Securities, and IAG, the parent company of British Airways.

On the positive side, the main cause of the ongoing FTSE 100 Index is known. Also, American stocks continued falling on Monday, with the Dow Jones and S&P 500 indices falling by over 1%.

Donald Trump pays close attention to the US stock market as we saw during the start of his Liberation Day tariffs last year. At the time, he moved to calm the market by announcing the start of negotiations with some key countries. 

The same may happen this time. He may end the war noting that he had achieved his goal of killing the Ayatollah and destroying the country’s missile program. Such a move will lead to a new stock market rebound.