Shares in City heavyweight Rolls-Royce sank on Friday morning as the firm got wrapped up in the market storm triggered by the ongoing conflict in the Middle East.
The FTSE 100 giant’s stock slumped nearly three per cent in mid-morning trading, sending its price crashing to 2026 low of 1,116.77p.
Over the last month, the firm’s shares have taken an over 16 per cent in the last month.
It comes as investors battle rising jitters followed by the mixed messages coming out of the war in Iran.
Donald Trump announced a 10-day delay to his plans to “obliterate” Iranian power plants on Thursday night, after the five-day pause announced earlier this week.
But the move has failed to bring markets any reprieve with the price of Brent crude – the international benchmark for oil prices – tipping back over the $110 mark after a two per cent gain. It came as the FTSE 100 slipped into the red after a morning bounce, falling 0.7 per cent to 9,902.07p.
‘Words alone aren’t cutting it’ as airlines sink
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Words alone aren’t cutting it right now, with President Trump’s extension of the pause on Iran energy strikes failing to lift the mood in any meaningful way.”
Rolls-Royce has been particularly hit amidst the market chaos as airlines and associated industries feel the crunch of turbulent travel markets and a potential crisis for jet fuel reserves.
Shares in British Airways-owner IAG were down one per cent on Friday to 355.20. For the year-to-date the firm’s stock has plummeted over 15 per cent.
Susannah Streeter, chief investment strategist at Wealth Club, said: “Airlines have had a particularly turbulent month, hit by disruption to Middle East routes, a fall in confidence and fears of escalating future fuel costs.”
Easyjet’s stock took a one per cent tumble on Friday morning to 351.47p.
Wizz Air said earlier this month it was bracing for a €50m hit from the disruption caused by the war, leaving it likely to make a loss this year. Shares in the firm are down over 30 per cent for the year.
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