More than £50billion was wiped off the value of the London stock market today – taking losses since the start of the war on Iran to £225billion.

On a brutal day for savers with money tied up in shares through their pensions, ISAs and other investments, the FTSE 100 index tumbled more than 200 points or 2 per cent in early trading.

The wider FTSE All-share – which includes smaller companies on the London stock market as well as the 100 blue chips – also tumbled 2 per cent.

That wiped £56billion off the value of Britain’s listed companies today – and took losses since war broke out in the Middle East at the end of last month to £225billion.

The losses in London were mirrored across Europe and Asia as stock markets around the world slammed into reverse.

The latest slump came as gas prices jumped 30 per cent and oil raced towards $120 a barrel having been around $70 just three weeks ago before the attack on Iran.

The surge in oil and gas prices – which is already pushing up the cost of petrol and threatens to send household energy bills soaring – came after Iran threatened ‘full-scale economic war’ and Donald Trump warned he could ‘massively blow up’ the world’s largest natural gas field in Iran.

Dan Coatsworth, head of markets at AJ Bell, said financial markets are ‘firmly in the red as investors react to the Middle East conflict intensifying’.

He warned ‘an inflation spike threatens to cause economic damage’ and added: ‘What’s annoying investors is the ongoing uncertainty – it’s impossible to make a call on what will happen next, so markets are taking it one day at a time.’

The stock market slump has left savers nursing heavy losses in their pensions and other investments – with millions of families watching the value of their retirement pots and nest eggs tumble.

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