FTSE 100 Live: Blue-chip index plunges 300 points as oil soars, BoE holds rates

Group 1: Market Impact and Economic Outlook - Asset and wealth managers are facing challenges as falling equity markets reduce assets under management, impacting fee income and revenues [1] - The escalating Middle East conflict raises fears of a broader impact on global economic activity and credit quality, increasing perceived risks for lenders [1] - Goldman Sachs warns that the Middle East conflict could reduce UK economic growth by 0.5 percentage points this year and delay interest rate cuts by the Bank of England until July at the earliest [3] Group 2: Energy Market Dynamics - Brent crude oil prices have surged, reaching $118 per barrel before settling at $114, influenced by geopolitical tensions in the Middle East [7][26] - Natural gas prices in Europe have spiked approximately 25% to over €68 per MWh, marking the highest levels in over three years due to attacks on energy infrastructure [21] - The shift towards renewable energy in Europe is helping to cushion the impact of higher gas prices on wholesale electricity costs, with renewables rising from around 30% of EU power generation in 2019 to nearly 50% last year [5] Group 3: Company-Specific Developments - DFS Furniture reported a significant increase in underlying pre-tax profit, rising 81% to £30.9 million, although footfall has softened in the second half [17][18] - IG Group announced a strategic review alongside record financial results, with revenue and underlying profits exceeding expectations [19][20] - M&G, NatWest, and Standard Chartered are experiencing declines in share prices, contributing to the overall drop in UK indices [2][16]