On Monday, London’s FTSE 100 exhibited minimal movement, with advances in energy shares counterbalancing declines in other sectors amidst ongoing tensions in the Middle East. Investors are now looking ahead to the forthcoming rate decision from the Bank of England later this week. As of 1011, the blue-chip FTSE 100 was 0.08% up after logging a second consecutive week of losses.

As the U.S.-Israeli conflict with Iran enters its third week, it persists in generating instability throughout the Middle East and unsettling international energy markets. On Sunday, U.S. President Donald Trump asserted that nations with significant dependence on Gulf oil bear a responsibility to assist in safeguarding the Strait of Hormuz, a critical passage for 20% of the global energy supply. Energy sector rose 1.2%, with oil major BP and Shell up more than 1%.
On the flip side, the travel and leisure sector fell nearly 2%. Metal miners were also among the top losers as gold prices remained steady, while copper prices experienced a decline.

Britain’s mid-cap index was on track for deeper losses on Monday, down 0.6%, weighed down by weakness in industrials and financial stocks. This week, investors will concentrate on interest rate decisions in the UK, the U.S., and Europe, as central banks convene for their first comprehensive meetings since the onset of the war, with a general expectation to refrain from additional rate cuts at this time. According to a survey, the majority of economists anticipate a 7-2 decision by the Monetary Policy Committee of the Bank of England to maintain the bank rate at 3.75%. Prior to the onset of hostilities on February 28, a reduction to 3.5% was widely regarded as almost inevitable.

Data released on Monday indicated that the asking price for British homes remained stable during the four weeks leading up to March 7. Among other movers, insurer Standard Life fell 2.4% despite reporting a better-than-expected rise in annual profit. CAB Payments experienced a notable increase of 13.4% following the announcement that StoneX Group has proposed an all-cash acquisition of the cross-border payments provider for 241.4 million pounds ($319.7 million).