Gold’s price surged ahead of the US and Israel launching a military action against Iran as investors seek a safe haven, while the Ftse 100 hit another record high before the escalation of geopolitical tensions in the Middle East.
Britain’s benchmark index concluded a remarkable week by setting a fresh all-time high on Friday, finishing at 10,910.55 after climbing 63.85 points, or 0.6 per cent.
Ahead of President Donald Trump telling Iran to “surrender or die”, the price of gold jumped to around £3,690 to £3,700 per troy ounce
Russ Mould, investment director at AJ Bell, said: “Two months in, it looks like 2026 could be a second bumper year in a row for investors putting their faith in UK stocks if current performance trends continue.”
Markets are reacting to this weekend’s visits
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During the session, the Ftse 100 touched an intraday peak of 10,934.94 before settling slightly lower.
London’s strength contrasted sharply with Wall Street, where the Dow Jones fell one per cent, the S&P 500 dropped 0.6 per cent, and the Nasdaq declined 0.9 per cent as investors digested unexpectedly robust US wholesale inflation figures alongside mounting US-Iran tensions.
Diplomatic efforts between Washington and Tehran appeared to falter on Friday after Iran stated the US must abandon its “excessive demands” to secure an agreement, dampening hopes raised by recent Oman-mediated negotiations.
President Trump had given Iran a 15-day deadline on 19 February to reach a deal, with American negotiators reportedly demanding the dismantling of three key nuclear facilities and the surrender of all enriched uranium.
The FTSE 100 rallied towards the end of
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GETTYInvestors are looking for a safe haven
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GETTYThe escalating standoff prompted several nations to evacuate diplomatic personnel, with the UK withdrawing embassy staff from Iran and the US authorising non-emergency personnel to leave Israel.
Crude prices responded to the heightened risk of conflict, with Brent climbing to $72.71 per barrel from $70.00 at the previous New York close.
Energy giants benefited from the rally, with Shell advancing 1.6 per cent and BP gaining 0.7 per cent. The surge in crude prices and growing fears of regional conflict weighed heavily on aviation stocks throughout the session.
IAG, the parent company of British Airways, tumbled 7.4 per cent despite reporting strong annual results, while budget carrier easyJet shed 2.6 per cent.
Donald Trump has called for a regime change in Iran | GETTY
Wizz Air suffered an even steeper decline of 8.7 per cent after Indigo Partners LLC disclosed the disposal of a £125million stake in the low-cost airline. Conversely, the uncertain geopolitical climate proved a boon for precious metals producers as investors sought safe-haven assets.
Among individual movers, London Stock Exchange Group led the blue-chip gainers with a 4.2 per cent advance as investors continued to digest Thursday’s results, with Bank of America dismissing concerns about artificial intelligence disruption to the company’s operations.
Property portal Rightmove climbed 4.3 per cent after announcing a higher-than-expected dividend alongside a share buyback programme, with the firm expressing confidence heading into 2026.
At the other end of the spectrum, Melrose Industries slumped 12 per cent following its annual earnings release, making it the day’s worst performer on the Ftse100.