The FTSE 100 edged closer to a new all-time closing high on Tuesday, lifted by easing fears over the Middle East conflict. The index rose 24.5 points, or 0.28%, to finish at 8,875, just short of its record 8,884.92, set last week.
Investor sentiment improved following reports that Iran is seeking to de-escalate tensions with Israel and resume nuclear talks, according to the Wall Street Journal. The news sparked a broader rally in global equities and drove a pullback in oil prices.
Brent crude fell 3.2% to $71.79 a barrel, reversing sharp gains seen last Friday when Israel launched a major strike on Iran, hitting over 100 targets, including nuclear sites and military infrastructure.
In London, gains were led by financial and travel stocks. Standard Chartered surged 3%, while Barclays and M&G rose 1.97% and 1.9%, respectively. International Airlines Group (IAG) also climbed 1.5% amid the improving geopolitical outlook.
European markets followed suit, with Germany’s DAX and France’s CAC 40 each up around 0.8% in late trade, tracking the improved global risk mood.
