FTSE 100 climbs as US‑Iran peace talks lift market sentiment

London’s FTSE 100 closed up 0.9% at 10,736 points, with the FTSE 250 also gaining around 0.7%. The rally was driven by a mix of stronger‑than‑expected UK economic data and reports that fresh peace negotiations between the United States and Iran could resume, easing concerns over Middle‑East tensions.

Key domestic indicators showed improvement: the S&P Global flash composite PMI rose to 52.1 in July, the services PMI hit 51.8, retail sales grew 4.2% year‑on‑year in June, and the GfK consumer confidence index improved to -17. The prospect of renewed diplomacy also pushed Brent crude down to about $95.50 a barrel, supporting risk appetite in equity markets.