FTSE 100 nears correction on rate hike expectations

Major stock indices in the United Kingdom plummeted on Monday, as escalating geopolitical tensions and rising energy costs prompted investors to brace for aggressive interest rate hikes. The blue-chip FTSE 100 fell 2.4% to its lowest level in three months, marking an 11% decline since the conflict involving Iran began earlier this month. This downward trend has placed the index on track to confirm a market correction following its record highs in February. Simultaneously, the mid-cap FTSE 250 index dropped 3.2%, reaching its lowest point since May 2025.