United Kingdom: Stocks Close on Lower Note.

The FTSE 100 closed about 1.2% lower at 10,780 on Monday, joining a global selloff triggered by the Middle East conflict following US and Israeli strikes on Iran over the weekend. Heightened geopolitical risks and increased uncertainty led investors to sell cyclical stocks while flocking to oil producers and defense firms. Travel shares suffered the most, with airspace closures in the Middle East, halted flights, and rising oil prices weighing on airlines, tour operators, hotels, and cruise lines. British Airways operator IAG fell 5.5% after canceling flights and the cruise operator Carnival tumbled 8.1%. Financials also suffered losses, with Standard Chartered slipping 5.3%, Barclays 3.4%, and Lloyds Banking Group 2.6%. JD Sports Fashion and Burberry Group dropped 5% and 4.7%, respectively. On the flip side, defense shares outperformed, with BAE Systems jumping 6.1%. Energy stocks also rose sharply, buoyed by a sharp surge in oil and gas prices. BP gained 2.1% and Shell rose 1.9%.