FTSE 100 hits over 5-month low as oil spike stokes inflation worries

London's FTSE 100 stock index hit a more than five month-low on Monday, as soaring oil prices in the wake of Western allies mulling a Russian oil import ban due to its invasion of Ukraine sparked inflationary concerns across the globe.

The blue-chip FTSE 100 fell 0.8% to its lowest since September 2021, with financial and consumer staple stocks leading losses.

Oil prices soared to $130 a barrel after US Secretary of State Antony Blinken said on Sunday that the US and European allies are exploring banning imports of Russian oil, and delays in Iranian talks.

However, energy and mining stocks jumping 5.1% and 2.3%, respectively, capped further losses in the commodity-heavy benchmark index.

The domestically focused mid-cap index fell 2.3%, with travel and leisure stocks among top drags.