FTSE 100 falls as oil prices jump on news of airstrikes

(Close): A jump in oil prices following news of airstrikes by Saudi Arabia on rebel targets in Yemen sent the UK stock market down by 1.4%.

The FTSE 100 was down 95.64 points at 6,895.33 at the close of the market.

Brent crude futures rose more than $2 to $58.80 a barrel. West Texas Intermediate crude rose $1.57 to $50.78 a barrel.

Airline shares were hit by the prospect of higher fuel bills, with Easyjet down 2.8% and IAG shares 3.4% lower.

Easyjet's fall came despite the carrier upgrading its half-year profit forecast, partly as a result of the weakening euro.

However, the biggest faller in the FTSE 100 was the London Stock Exchange. Shares in the exchange fell 5.6% after Borse Dubai sold its complete 17.4% stake in the LSE.

Shares in chip designer ARM Holdings fell a further 4.2% after a broker downgrade. On Wednesday, ARM shares had fallen more than 6% following a sell-off in the US tech sector.

Outside the FTSE 100, shares in Supergroup - the company behind the Superdry brand - jumped 6.2% after it said it would start paying dividends in the 2015-16 financial year.

Supergroup also announced it would launch a fashion range with actor Idris Elba.

On the currency markets, the pound fell 0.22% against the dollar to $1.4853. Against the euro, sterling climbed 0.29% to €1.3608.