FTSE 100 plunges as European markets in disarray after Israel strikes back at Iran
The FTSE-100 index at 8:15am was down 29.99 at 7847.06.
European markets have plunged by 0.5 percent due to mounting fears of a war in the Middle East.
Hefty drops have started after Israel launched a retaliatory strike against Iran.
The heaviest European drops include a near 1 percent drop in the FTSE MIB in Italy, a 1.1 percent drop in the Dax in Germany and a 0.8 percent fall in the Cac 40 in France.
The international Benchmark of Brent crude oil rose of a hefty 4.2 percent after news of the attack was confirmed.
Asian markets also faced a sharp drop with investors deciding to put their money into evergreen stocks like gold, which rose by 1.3pc to $2,417.84 an ounce.
The FTSE-100 index at 8:15am was down 29.99 at 7847.06.
The drop comes after reports from US media that western officials told them that Israel had launched missiles and Iran had said it shot down drones near an air base (Isfahan) near a nuclear facility.
Today's report comes after Iran fired more than 300 missiles at Israel over the weekend.
The catalyst for this recent conflict was the October 7 attacks by Hamas in Israel which reportedly resulted in the deaths of over 1,000 Israelis and the taking of 250 hostages.
At the time the attack was praised as a "great calamity for Israel" and a "devastating earthquake" by Iran's Supreme Leader Ayatollah Ali Khamenei.
Some experts also attribute the drops in the FTSE 100 to worse than expected retail sales in Britain.
Data from the Office of National Statistics showed a 0 percent across the retail sector, with food store sales declining 0.7 percent and a 1.5 percent drop in sales for non-store retailers.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, told the Telegraph: “[the news] doesn’t bode too well for some names in the grocery industry, with corporate updates expected next week”
“The data also speaks to growing concerns about resilience in the wider retail sector. Mid-market names are in a very difficult position and pressure isn’t abating.”
