Britain’s blue-chip index recorded its best daily performance in almost a year after Donald Trump indicated the US could end the war in Iran “very soon.”
The FTSE 100 closed up 188 points at 10,364, a gain of 1.85%, marking its largest rise since 14 April 2025, when the index rebounded 2.1% following a sell-off linked to the Liberation Day tariffs.
The rally follows a difficult March, during which the FTSE 100 fell 5.6% amid concerns over energy market disruption and rising inflation driven by the Iran conflict.
Engineering groups Babcock (+9.5%) and Rolls-Royce (+6.6%) were among the standout gainers, alongside catering firm Compass, which rose 7.4%. Banks and airlines also advanced, while oil producers came under pressure as crude prices declined.
The session marked the FTSE 100’s strongest performance since 14 April 2025, when markets rallied after Donald Trump softened elements of his trade stance toward China.
Market sentiment improved on Wednesday after the US president signalled plans to withdraw from Iran in the coming weeks, adding that Tehran “doesn’t have to make a deal.” Trump also claimed that Iran’s new president had requested a ceasefire, describing him as “much less radicalised and far more intelligent than his predecessors.”
Today’s gains were driven by growing optimism that President Trump could signal an end to the Iran conflict in a public address scheduled for later tonight (9pm ET / 2am BST).
