The FTSE 100 fell by more than one per cent as escalating uncertainty in the Middle East weighed on investor sentiment, prompting a broad retreat in UK equities.

The decline reflects growing concern that geopolitical tensions could disrupt energy markets and global trade, increasing volatility across financial markets.

Investors have moved toward a more cautious stance, reducing exposure to risk-sensitive assets amid fears of further escalation.

Among the most notable declines, shares in investment group 3i came under pressure, contributing to the broader downward movement in the index.

The sell-off highlights how individual companies with exposure to global economic conditions can be particularly sensitive to shifts in sentiment.

Energy-related uncertainties have played a central role in the market reaction, with the potential for supply disruptions influencing expectations for inflation and economic growth.

Rising oil and gas prices could increase costs for businesses and consumers, adding to existing economic pressures.

Analysts note that the market response underscores the close link between geopolitical developments and financial performance, particularly in globally integrated economies such as the United Kingdom.

Heightened uncertainty tends to drive volatility, as investors reassess risk and adjust portfolios accordingly.

Despite the decline, market participants continue to monitor developments closely, with attention focused on whether tensions stabilise or intensify in the coming days.

The direction of the FTSE 100 is likely to remain closely tied to geopolitical signals and their implications for the global economy.