London markets declined on Thursday, ending a three-day rally as investor sentiment softened amid fading expectations of a swift resolution to global tensions.
The FTSE 100 slipped 0.2%, while the FTSE 250 dropped 0.9%, though both remained on track for weekly gains.
A broader risk-off mood emerged after renewed signals from Donald Trump unsettled global markets.
Energy stocks outperformed sharply, with the sector rising 3.6% as oil prices surged, reflecting concerns over supply constraints and pricing pressure.
Industry leaders BP and Shell climbed 4.5% and 3.3%, respectively, leading gains on the benchmark index.
In contrast, precious metal miners fell over 5%, weighing heavily on the market as gold prices retreated.
Market expectations now point to more than two rate cuts from the Bank of England by year-end, signaling shifting monetary outlooks.
Meanwhile, declining business confidence and rising price expectations highlight growing concerns over inflationary pressures and economic stability.
