The UK’s blue-chip FTSE 100 index edged higher on Tuesday, supported by strong gains in cyclical sectors including mining and banking, as investors monitored developments in efforts to bring an end to the conflict involving Iran.
The FTSE 100 closed 0.3% higher, while the mid-cap FTSE 250 advanced 0.6%.
Mining stocks were among the strongest performers of the session, with major players Glencore, Anglo American and Rio Tinto each rising by around 4% as copper prices climbed to their highest level in more than two weeks.
Banking shares also enjoyed a strong session, with the UK banking index gaining 1.9% to reach its highest closing level since December 2007.
Oil and gas stocks posted modest gains of 0.4% as crude prices remained relatively stable. Market sentiment was supported by reports that Iran was reviewing a proposed agreement with the United States aimed at ending the conflict, while Lebanon announced a partial ceasefire between Hezbollah and Israel.
Since the outbreak of the war, Iran has significantly disrupted non-Iranian shipping through the Gulf, affecting roughly one-fifth of global oil and liquefied natural gas supplies. The disruption has contributed to higher energy prices and renewed concerns about inflation.
Bank of England Governor Andrew Bailey reiterated the importance of returning inflation to target levels and maintaining public confidence in the central bank’s ability to control price pressures.
Among individual stocks, British American Tobacco fell 2.5% despite raising its outlook for revenue from reduced-risk products such as vaping devices following a major policy change in the United States. The company left its overall group guidance unchanged.
Meanwhile, identity verification specialist GB Group tumbled 17% after reporting an annual loss, largely driven by a £73.1 million impairment charge.
