London equities edged lower on Friday, putting the FTSE 100 on track for a third consecutive weekly decline amid escalating Middle East tensions.
Markets remained volatile, swinging between gains and losses as investors assessed the impact of rising oil prices and persistent geopolitical uncertainty.
Crude prices climbed despite coordinated efforts by global powers to secure shipping through the Strait of Hormuz and boost supply.
Energy stocks slipped 0.9% but hovered near record highs, while heavyweight pharmaceutical shares also posted modest declines.
The Bank of England held rates at 3.75%, warning inflation risks outweigh slowing growth, reinforcing expectations for further monetary tightening.
Traders are now pricing a roughly 60% chance of an April rate hike, with potential for multiple increases by year-end.
Fiscal concerns intensified after stronger-than-expected government borrowing, driven by volatile debt costs and rising pressure for increased public spending.
Among movers, Unilever gained on asset sale talks, while Smiths Group and JD Wetherspoon dropped sharply after weak earnings and rising cost pressures.
