UK stock market weekly gains extended for a fourth straight week, with equities rallying after Iran signaled that the Strait of Hormuz would remain open during the ceasefire period, easing concerns over global energy supply.
The benchmark FTSE 100 rose 0.7 percent to close at 10,667.63, while the FTSE 250 outperformed with a 1.9 percent gain, marking its third consecutive week of advances.
Investor sentiment improved sharply after oil prices fell below $90 per barrel, reducing inflationary pressure and boosting risk appetite across sectors.
Travel and leisure stocks were among the biggest beneficiaries of the decline in crude prices. Wizz Air and Carnival surged over 7 percent, while easyJet gained around 6 percent, reflecting lower fuel cost expectations.
Mining stocks also performed strongly, with Fresnillo rising 6.4 percent, supported by firm precious metal prices.
In contrast, energy majors came under pressure as crude prices declined. BP fell 7.4 percent, and Shell dropped 5.6 percent, weighing on the index.
Banking stocks added to the market’s strength, with gains across major lenders. Barclays climbed 3.5 percent, Standard Chartered rose 2.9 percent, and HSBC advanced 2 percent.
On the policy front, Huw Pill reiterated that the central bank’s primary focus remains on bringing inflation back to its 2 percent target, underscoring the importance of price stability in the current environment.
Meanwhile, utilities stocks declined after reports that UK Finance Minister Rachel Reeves is considering reforms to decouple gas and electricity pricing, a move that could impact sector profitability.
National Grid and Severn Trent edged lower, while SSE and Centrica saw sharper declines.
Defence stocks remained resilient, with BAE Systems and Rolls-Royce posting gains amid continued geopolitical uncertainty.
However, not all stocks participated in the rally. Workspace Group fell 6.2 percent after warning of a significant drop in annual profit.
The broader market rally reflects easing geopolitical tensions and falling energy prices, though analysts caution that sentiment remains sensitive to developments in the Middle East and global inflation trends.
