FTSE slips as energy and miners weigh on UK markets

London’s FTSE 100 fell 0.7% by 0907 GMT on Friday and the FTSE 250 declined 0.6%, with commodity-linked sectors losing ground.

Energy stocks were among the largest drags on the FTSE 100. Shares of Shell and BP each fell more than 1% as crude oil prices slipped nearly 2% after shipping through the Strait of Hormuz resumed, reducing a premium on some supply routes.

Chemical stocks were the weakest sector, down 2.8%, while mining shares fell more than 1%. A stronger US dollar pushed base and precious metal prices lower, adding pressure on miners and chemical firms.

Investors continued to weigh inflation risks and the outlook for UK interest rates. Data compiled by LSEG showed markets had priced in at least one 25-basis-point Bank of England rate increase later this year.

Market participants also factored in uncertainty around artificial intelligence-related stocks, which contributed to cautious positioning across growth and cyclical names.

Defensive sectors provided some support. Food, Beverage and Tobacco stocks rose about 1% and Personal Goods companies gained roughly 1%, while the domestically focused FTSE 250 moved toward modest weekly losses.

Travel and leisure stocks remained under pressure. Heathrow Airport lowered its passenger forecast for 2026 and warned that its profit could shrink this year, weighing on airlines and airport operators.

One notable riser was money transfer firm Wise, whose shares jumped 7.6% after it reported active customers increased 21% to 18.9 million in fiscal 2026 and announced a new share purchase programme. Sentiment had improved following an easing of tensions in the Middle East.

At the close of the session, London’s major indexes remained lower.