The FTSE 100 dropped into correction as Middle East tensions sparked global markets, oil surged, and the pound weakened.

The FTSE 100 fell below 10,000 and entered correction territory, dropping over 10% from its recent peak amid escalating Middle East tensions, rising oil prices, and fears of global supply disruptions. Geopolitical conflict, including Iran’s threats and a U.S. ultimatum over the Strait of Hormuz, triggered a global market sell-off, with bond yields rising to levels not seen since 2008. Oil prices surged past $114 a barrel, while the pound weakened and mortgage rates climbed. Despite some rebound in U.S. and European markets after a Supreme Court decision, uncertainty persists over inflation, energy costs, and policy changes.