London close: FTSE 100 hits five-week high on tentative peace deal hopes

26th May 2026 16:09

(Sharecast News) - London's blue chips rose to a five-week high on Tuesday, though trading was rangebound as investors continued to digest mixed signals surrounding peace deal talks between the US and Iran, while oil prices rebounded after heavy falls over recent days.

The FTSE 100 rose just 0.24% to 10,491.39 but finished at its highest level since 21 April, having gained 2.9% in the six trading sessions since 15 May.

UK and US stock markets were playing catchup after being closed on Monday for the bank holiday, missing out on the huge surge seen across European markets, with the Stoxx 600 benchmark finishing within whiskers of its record high set in February.

By the close of play on Tuesday, Brent crude was up 4.1% at $97.21 a barrel, bouncing back after a near-10% plunge the previous session amid signs of progress in peace talks between Washington and Tehran.

However, oil prices rose again after the US launched new strikes on Iran, threatening the fragile ceasefire that began on 8 April. The US struck missile launch sites and mine-laying boats in southern Iran overnight, with Central Command (Centcom) saying it was an act of self-defence.

US Secretary of State Marco Rubio said a peace deal with Iran was still possible despite the strikes, after president Donald Trump said at the weekend that an agreement with Iran had been "largely negotiated".

"Despite the latest military skirmishes between America and Iran, the price of Brent crude stands just below $100 a barrel, to suggest that financial markets' are keeping faith in their preferred and anticipated outcome of a peaceful resolution, a reopening of the Strait of Hormuz and a normalisation in the supply and price of oil," said AJ Bell's investment director Russ Mould.

Kingfisher jumps, Melrose slides

B&Q and Castorama owner Kingfisher rallied after saying it was still on track to meet full-year guidance despite a 0.9% fall in first-quarter sales due to softer markets in the UK and France.

BA and Iberia owner IAG was among the gainers as Morgan Stanley said it remains its top pick in European airlines. British Land was also in the black after Barclays upgraded the shares to 'overweight' from 'equalweight'.

On the downside, Melrose Industries was under the cosh following a chemical incident at GKN Aerospace's Garden Grove facility in the US. The company said there had been mandatory evacuation orders for portions of the surrounding community to protect public safety while response operations continued but that there had been no injuries, leaks or contamination.

BP shares slid as the oil giant said that chair Albert Manifold had been removed with immediate effect after "serious" concerns were raised about "important governance standards, oversight and conduct".

Autotrader slumped after Panmure Liberum downgraded the shares to 'hold' from 'buy' and slashed the price target to 420p from 830p. Panmure said the aftermath of the "disastrous" Deal Builder rollout has been worse than it expected.

On the FTSE 250, veterinary services provider CVS Group gained after saying it has successfully refinanced its bank debt facilities and announcing the launch of a £50m share buyback and the acquisition of a small animal practice in Australia.

Market Movers

FTSE 100 (UKX) 10,491.39 0.24%

FTSE 250 (MCX) 23,327.49 0.69%

techMARK (TASX) 6,058.11 -0.18%

FTSE 100 - Risers

Metlen Energy & Metals (MTLN) 41.50p 6.46%

JD Sports Fashion (JD.) 81.28p 4.69%

International Consolidated Airlines Group SA (CDI) (IAG) 412.30p 3.88%

Antofagasta (ANTO) 4,075.00p 3.66%

Glencore (GLEN) 585.50p 2.88%

Burberry Group (BRBY) 1,156.00p 2.85%

Smurfit Westrock (DI) (SWR) 2,863.00p 2.62%

Lion Finance Group (BGEO) 10,890.00p 2.35%

Pershing Square Holdings Ltd NPV (PSH) 4,188.00p 2.20%

Convatec Group (CTEC) 201.20p 2.13%

FTSE 100 - Fallers

Melrose Industries (MRO) 482.20p -5.38%

BP (BP.) 529.00p -4.03%

Flutter Entertainment (DI) (FLTR) 7,128.00p -3.36%

Autotrader Group (AUTO) 439.20p -3.35%

Admiral Group (ADM) 3,368.00p -3.22%

Rightmove (RMV) 431.80p -2.00%

Compass Group 11 (CPG) 30.54p -1.90%

Tesco (TSCO) 454.30p -1.84%

London Stock Exchange Group (LSEG) 9,176.00p -1.61%

Diageo (DGE) 1,576.50p -1.47%

FTSE 250 - Risers

CVS Group (CVSG) 1,269.00p 5.84%

HGCapital Trust (HGT) 346.50p 5.32%

Johnson Service Group (JSG) 144.50p 5.17%

Raspberry PI Holdings (RPI) 782.50p 4.47%

Hochschild Mining (HOC) 595.50p 4.11%

W.A.G Payment Solutions (EWG) 110.80p 3.94%

Wizz Air Holdings (WIZZ) 1,014.00p 3.84%

Edinburgh Worldwide Inv Trust (EWI) 274.50p 3.78%

Endeavour Mining (EDV) 4,438.00p 3.50%

The Schiehallion Fund Limited NPV (MNTN) 2.12p 3.41%

FTSE 250 - Fallers

AEP Plantations (AEP) 1,746.00p -6.23%

C&C Group (CDI) (CCR) 103.80p -3.89%

Ceres Power Holdings (CWR) 783.00p -3.03%

Hilton Food Group (HFG) 543.50p -2.51%

AJ Bell (AJB) 627.00p -2.49%

Spire Healthcare Group (SPI) 217.00p -2.47%

Cranswick (CWK) 5,400.00p -2.17%

Kainos Group (KNOS) 862.50p -2.04%

Premier Foods (PFD) 201.60p -2.04%

Tate & Lyle (TATE) 499.40p -1.79%