The FTSE 100 suffered its biggest one-day fall in a month as investors grew increasingly nervous about the global economic outlook. The index slid by 1.2% to 7,444.45, with all sectors in the red.
US-China trade tensions and concerns over Brexit continued to weigh on market sentiment, contributing to the decline. Analysts warned of a 'perfect storm' for markets as global growth fears mounted.
The oil price dropped to its lowest level in three years, reaching USD 60.63 per barrel, further exacerbating the market's woes. Energy stocks, including Royal Dutch Shell and BP, were among the biggest losers.
Investors remain on high alert ahead of a crucial interest rate decision by the Bank of England next week. The central bank is expected to keep rates unchanged, but markets will be watching for any hints at future policy shifts.