Global stocks were plunged into turmoil on Friday as an escalation in the fighting in Ukraine sent shockwaves through markets.
Traders were gripped by fears of nuclear disaster after heavy Russian shelling sparked a blaze at Europe’s largest nuclear power plant in Zaporizhzhia.
The fire was extinguished and the plant was said to be safe after Russian forces seized control of the site, but world leaders condemned the “reckless” assault that risked nuclear catastrophe.
Combat raged elsewhere, with Vladimir Putin stepping up the bombardment of several Ukrainian cities as the war entered its second week.
The FTSE 100 crashed 3.5pc, wiping just under £79bn off Britain’s biggest companies for a total of £133bn across the week. It was the first weekly performance for the blue-chip index since the outbreak of Covid in March 2020.
Oil giants Shell and BP were among the biggest drags on the index, even as oil prices continued their recent rally to trade at around $115 a barrel.
Financial stocks including HSBC and Barclays also slid as the ramping up of sanctions and surging commodity prices fuelled fears of further inflation and a hit to economic growth.
Miners Evraz, Polymetal International and Fresnillo were among the few stocks to buck the downward trend as they tracked precious metals prices higher.
Meanwhile, European stocks dropped to their lowest levels in a year. The benchmark Stoxx 600 index sank 3.6pc, pushing it into correction territory as it tumbled more than 10pc below its record high reached in January. Its 7pc fall across the week was also the sharpest since March 2020.
Wall Street’s three main indices also fell as much as 2pc, with nearly three quarters of companies on the S&P 500 in the red.
Benchmark Brent crude maintained its ascent after hitting its highest level since 2008 near $120 a barrel earlier in the week. That capped off its most tumultuous week ever, as it gained more than 20pc and swung wildly within a $20 range.
European natural gas prices surged to an all-time high above €200 per megawatt-hour, while the UK equivalent also hit its highest level ever.
Fears of supply disruption spread to a range of products, ranging from wheat and corn to nickel and aluminium, driving commodities to their biggest weekly surge since the 1974 oil crisis.
Market panic also pushed investors towards safe-haven assets, with the dollar climbing to its highest since 2020. The euro dropped to its lowest level in almost two years.
