London’s primary indexes experienced a decline on Thursday, interrupting a three-day streak of gains, as market sentiment deteriorated following U.S. President Donald Trump’s commitment to more aggressive actions against Iran. Trump had previously indicated a desire for a swift resolution to the conflict, fostering optimism regarding de-escalation; however, his recent comments have triggered a risk-averse sentiment throughout financial markets.

The blue-chip FTSE 100 index fell 0.2% by 1149, while the midcap FTSE 250 was down 0.9%. Both indexes remained poised to conclude the holiday-shortened week on an upward trajectory. The energy index rose 3.6% after oil jumped more than 7% following Trump’s comments, stoking investor fears about sustained supply disruptions. Oil majors BP and Shell rose 4.5% and 3.3% respectively, ranking among the top gainers on the benchmark index.

Precious metal miners fell 5.1% and were the biggest drag on the index, after gold prices slid following the comments. Market expectations indicate that the Bank of England is likely to implement more than two quarter-point reductions by year-end, as per data. British business confidence declined from +2.8 on the eve of the conflict to -1.1 by the conclusion of the 10-week survey period on March 16, as reported by a survey of accountants that reflected similar apprehensions from other groups since the onset of the U.S.-Israeli attacks.

British companies anticipate an acceleration in price increases over the next 12 months, driven by a spike in energy prices attributed to the Iran war, according to a survey conducted by the Bank of England. Markets will be closed for Good Friday and Easter Monday.