Oil stocks took a knock as the price of crude fell nearly $5 a barrel on hopes full-blown war in the Middle East can be avoided.
Brent crude fell as much as 6pc from $75.89 to $71.29 – its lowest level since mid-September – before clawing back some of its losses.
The slide came on signs the Middle East may be drawing back from a dramatic escalation of the conflict.
Although Israel launched retaliatory air strikes against Iran over the weekend, it avoided key oil and nuclear facilities and did not disrupt energy supplies.
Iran’s leadership said it was considering its response, adding that the attack caused only ‘limited damage’ in what was seen as a sign that Tehran is reluctant for the conflict to intensify.
London-listed energy stocks fell oil prices lower on Monday
The slump in the oil price sent BP down 1.4pc, or 5.8p, to 399.1p and Shell off by 1.4pc, or 34.5p, to 2516p.
But airlines were in demand as a drop in oil prices provided hopes for lower fuel costs.
British Airways owner IAG gained 1.8pc, or 3.8p, to 215.3p, Easyjet added 2.7pc, or 13.8p, to 520.4p, and Wizz Air surged 4.6pc, or 61p, to 1387p.
Cruises operator Carnival rose 4.2pc, or 61.5p, to 1518p.
Ahead of a busy week for corporate news, economic data, and, of course, the Budget, the main indexes in London managed to push higher.
The FTSE100 index closed up 0.5pc, or 36.78 points, to 8285.62, and the FTSE250 index inched up 0.1pc, or 15.19 points, to 20835.1.
It certainly is looking ‘Better by Rail’ for online ticketing firm Trainline which raised its full-year guidance for the second time in two months, reflecting a buoyant first half and a strong start to the second.
The firm said it expects net ticket sales to increase by 12pc-14pc in the year to February 28, 2025, up from a previous target of 8pc-12pc growth, while revenue growth is tipped to be 11pc-13pc, up from 7pc-11pc previously.
In the six months to August 31, the firm reported a 14pc year-on-year jump in net ticket sales to £3bn, and a 17pc leap in revenue to £229m.
Trainline shares jumped 9.2pc, or 31p, to 368p, topping the FTSE250 gainers board.
Back among commodity plays, precious metal miners tracked lower gold prices against a stronger US dollar, with Endeavour Mining down 1.5pc, or 28p, to 1818p and Fresnillo losing 0.7pc, or 5.5p at 753p.
Elsewhere, BT Group fell 1.1pc, or 1.6p, at 142.8p amid reports the telecoms firm is looking at the possible sale of its Radianz network services supply unit.
On the second line, Computacenter slipped 0.9pc, or 22p to 2312p after downgrading its full-year profit guidance following a softer-than-expected end to the third quarter.
Investors in domestic businesses in Georgia were weak amid political uncertainty in the former Soviet state.
The Georgian opposition called for protests and the EU demanded an investigation into irregularities after a disputed legislative vote that showed a win for the ruling party.
TBC Bank Group led the FTSE 250 fallers, down 9.9pc, or 285p, to 2585p and Bank of Georgia Group fell 5.6pc, or 225p, to 3775p.
Stock watch
Potash development company Emmerson suffered a blow after its project in Morocco failed to get approval.
The group is reviewing its options after Moroccan authorities gave an unfavourable recommendation for its Khemisset Potash Project.
Emmerson also unveiled boardroom changes and cash-management strategies to deal with the impact of the delays. Shares plunged 50.2pc, or 0.28p, to 0.28p.
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