March 6 (Reuters) - The UK's main indexes were on track for their biggest weekly decline in almost a year on Friday, as the escalating war in the Middle East fuelled concerns about a resurgence in inflation driven by higher energy prices.
The blue-chip FTSE 100 (.FTSE), dipped 0.1% by 1130 GMT, while the FTSE 250 (.FTMC), was flat, but both the indexes were on course for their worst weekly showing since the April 2025 rout triggered by U.S. President Donald Trump's "Liberation Day" tariffs.
Shares of oil majors Shell (SHEL.L), and BP (BP.L), rose nearly 2%, tracking crude prices , as the conflict kept shipping and energy exports through the vital Strait of Hormuz blocked.
Qatar's energy minister expects all Gulf energy producers to shut down exports within weeks. In an interview with the Financial Times, he said the move could drive oil to $150 a barrel.
Soaring energy prices have prompted traders to sharply pull back bets of interest rate cuts this year, with money market futures pricing in just 15% odds of a 25-basis-point rate cut from the Bank of England this month, compared with 80% before the conflict began.
Halifax data showed British house prices rose in February at the fastest annual pace since October, up 1.3% year‑on‑year and beating economists' forecasts. But the lender warned that geopolitical uncertainty and renewed inflation pressures could slow the pace of any interest‑rate cuts, tempering the outlook for the sector.
Among other movers, Flutter Entertainment (FLTRF.L), inched up 1.1% after activist investor Parvus Asset Management doubled its stake in the FanDuel-owner.
IMI (IMI.L), rose 2% after the specialist engineering firm forecast mid-single-digit organic revenue growth for 2026, citing resilient demand in its automation segment, and announced a 500-million-pound share buyback programme.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Maju Samuel
