2026.05.2707:43:57UTC+00FTSE 100 Lags Europe as Energy and Utilities Fall

The FTSE 100 traded flat to slightly lower on Tuesday, lagging broader European markets as weakness in energy and utility stocks weighed on the benchmark. Sentiment was dampened by a pullback in oil prices, driven by hopes of progress toward a US–Iran peace agreement, despite ongoing security uncertainty in the Strait of Hormuz. Shell slipped about 1.7%, while BP lost 0.8%.

Utilities also retreated: Centrica fell more than 2%; Severn Trent and SSE each declined 1.8%; National Grid was down 1.4%; and United Utilities dropped 1.2%. In regulatory news, Ofgem confirmed that the UK household energy price cap will rise by 13% from July, adding around £18 a month to a typical bill. This is the largest increase since 2023, reflecting the impact of elevated energy costs amid continued tensions in the Middle East.

On the corporate front, Greencore reported a solid performance in its third quarter, while Pets at Home delivered full-year profits in line with market expectations.