Global stock markets slump amid Iran war as gas and oil prices rise

<p>FTSE 100 on track for its worst day in 11 months, while Japan’s Nikkei and South Korea’s Kospi also fall</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/mar/03/spring-forecast-rachel-reeves-statement-economic-plan-obr-oil-gas-stock-markets-live-updates">Business live – latest updates</a></p></li><li><p><a href="https://www.theguardian.com/world/live/2026/mar/03/us-israel-war-iran-live-updates-attacks-strikes-trump-netanyahu-lebanon-middle-east-latest-news">Middle East crisis – live updates</a></p></li></ul><p>The war in the Middle East has plunged financial markets into turmoil for a second day, with oil and gas prices surging, global stock markets slumping and chances of a UK interest rate cut later this month plummeting.</p><p>The London stock market has fallen deep into the red, a gloomy backdrop for the chancellor’s spring forecast at 12.30pm GMT. The FTSE 100 index lost about 280 points on Tuesday morning, falling to 10,501 in a 2.6% drop and leaving it on track for its worst day in 11 months – since Donald Trump’s “liberation day” tariff shock of April 2025. Almost all stocks fell.</p> <a href="https://www.theguardian.com/business/2026/mar/03/global-stock-markets-iran-war-gas-oil-prices-ftse-100">Continue reading...</a>