FTSE 100 eases as oil crosses $100

The blue-chip FTSE 100 index dropped ​0.7% to 10,639.2 points, while ​the midcap FTSE 250 was down 1.3%

Britain’s FTSE 100 eased on Thursday as world risk sentiment took a ‌hit with government bond yields up and crude oil prices passing the crucial $100 a barrel mark as the Middle East war showed no signs of slowing down.

The blue-chip FTSE 100 index dropped ​0.7% to 10,639.2 points, reversing most of the previous session’s 1% rise, while ​the midcap FTSE 250 was down 1.3%. Both indexes marked their ⁠biggest one-day decline so far this month.

Precious metal miners declined 5.1% as gold prices ​shed nearly 2% on a stronger dollar and rising inflation concerns due to the oil ​price spike.

Utilities dived 2.5%, the personal goods sector was down 2.2% and beverages shed 2.1%.

Travel and leisure shares pulled back 1.9% with shares of airlines including Wizz leading declines as higher oil prices weighed.

Mitchells & ​Butlers dipped 5.1% after the pub group reported flat third-quarter like-for-like sales, citing the adverse ​impact on its food business from the ongoing heatwave.

Heavyweight banks declined 1.3% and aerospace and defence shed 0.8%.

Brent crude’s more than 6% rise helped Britain’s energy giants gain 2.1%.

The U.S. president warned of military action against Iran ​and its allies, ​after the Yemeni ⁠fighters struck two Saudi oil tankers in the Red Sea, extending the Middle East war to a second major shipping chokepoint.

Britain’s new ​prime minister, Andy Burnham, said he would lower business rates for pubs, ​clubs and ⁠live music venues by 20% from April, his third announcement in three days of measures to help households and businesses.