FTSE 100 rises on US‑Iran peace hopes and steady oil prices

London’s FTSE 100 closed up about 0.6% at 10,494.21 on Tuesday as oil prices fell below $80 per barrel, reflecting optimism that a US‑Iran peace agreement will soon ease Middle‑East tensions. President Donald Trump said the Strait of Hormuz would be "completely open" once Washington and Tehran sign a deal, and Iranian media reported that three oil tankers and two cargo ships had already passed through the waterway. Brent crude traded at $79.95 a barrel, down from $83.18 the previous day, boosting sentiment across European markets – the CAC 40 rose 0.8% and Germany’s DAX added 0.1%.

Bank stocks and housebuilders led gains in London, with NatWest up 2.2%, HSBC 1.8% and Barclays 1.5%; Barratt Redrow and Persimmon each rose near 2% on expectations that lower energy costs will support consumer confidence. SpaceX’s newly listed shares continued to climb after its IPO.

On Wednesday the FTSE 100 inched higher again, ending up 0.1% at 10,508.61 as investors awaited the Federal Reserve’s rate‑hold decision and the Bank of England’s policy meeting. The Fed, chaired for the first time by Kevin Warsh, kept rates in the 3.50‑3.75% range but adopted a firmer tone, removing language that suggested future cuts. Oil steadied, with Brent at $80.11, and market participants gauged the impact of the evolving US‑Iran agreement on global energy supplies and inflation outlooks.