London midday: FTSE extends gains amid Middle East peace hopes

25th Mar 2026 10:58

(Sharecast News) - London stocks had extended gains by midday on Wednesday amid hopes of a potential resolution to the war in the Middle East, and as investors digested the latest UK inflation reading.

The FTSE 100 was up 1.4% at 10,100.64. Brent crude was down 5.7% at $98.56 a barrel and West Texas Intermediate was 5.6% lower at $87.22.

Speaking at the Oval Office on Tuesday, Donald Trump said the US and Iran were "in negotiations right now".

"They're talking to us, and they're talking sense," Trump said.

Also on Tuesday, it was reported that the US had sent a 15-point plan to Iran as it looks to resolve the conflict in the Middle East.

According to The New York Times, citing two officials briefed on the diplomacy, the plan was delivered via Pakistan.

Israel's Channel 12 was the first to report the plan, saying that a one-month ceasefire would be announced according to a mechanism being worked on by US Middle East envoys Steve Witkoff and Jared Kushner.

According to N12, the 15-point plan includes the dismantling of Iran's existing nuclear capabilities, a commitment from Iran to never pursue nuclear weapons and no uranium enrichment on Iranian soil.

It also includes the transfer of all enriched material under an agreed schedule, the decommissioning of nuclear facilities at Natanz, Isfahan and Fordow, and full access for international atomic inspectors to all information.

Under the plan, Iran would end its proxy strategy in the region, stop funding and arming proxy groups, and keep the Strait of Hormuz open as a free maritime zone. The plan also includes restricting missile use to self-defence purposes.

In return, all sanctions on Iran would be lifted. Iran would also receive support for a civilian nuclear program in Bushehr.

Russ Mould, investment director at AJ Bell, said: "European markets moved higher in early trading on Wednesday, despite conflicting messages about the Middle East crisis.

"The FTSE 100 moved back through the 10,000 level, led by banks and miners. Oil prices remained volatile as talk of a potential peace plan was offset by ongoing strikes in the Middle East and reports of the US sending more troops to the region.

"The 10-year gilt yield fell 0.15 percentage points to 4.8%, bringing some calm to the bond markets.

"There were tentative signs of increased risk appetite on equity markets as investors took advantage of depressed valuations in pockets of the airline and housebuilding sectors, with International Consolidated Airlines and Barratt Redrow among the top FTSE 100 risers."

On home shores, figures from the Office for National Statistics showed that inflation was unchanged in February, in line with forecasts. The consumer prices index in the 12 months to February showed no change on January, at 3%.

The largest upward driver was the price of clothing, which jumped 0.9% compared to no change a month earlier. But that was offset by falls in the cost of petrol ahead of war starting in the Middle East.

Grant Fitzner, chief economist at the ONS, added: "A fall in the cost of alcoholic drinks due to promotional activity, compared with a rise last year, was also a downward driver, while little change in food prices - again compared with a small rise this time last year - added further downward pressure."

However, core CPI, which strips out the more volatile prices of energy, food, alcohol and tobacco, edged up to 3.2% from 3.1%.

The data predates the US attacks on Iran at the end of February, which sent global energy prices soaring as the conflict spread through the region and the Strait of Hormuz, a vital shipping route, ground to a virtual halt.

In equity markets, Croda jumped after an upgrade to 'overweight' from 'equalweight' at Morgan Stanley.

Miners also rose, with Anglo American and Antofagasta both higher, while United Utilities gained after saying full-year underlying earnings per share were expected to be in line with previous guidance of roughly 100p.

Housebuilders Barratt Redrow and Bellway were in the black, while freight and road payments process Eurowag shot up as it forecast further growth, after annual earnings motored ahead.

Diageo advanced after saying it had sold the Royal Challengers Bengaluru cricket team for £1.3bn to a consortium including Blackstone and US sports investor David Blitzer.

On the downside, Experian, Relx and Pearson all fell amid renewed worries about AI disruption.

RS Group tumbled after saying it expects a 0.6% fall in like-for-like annual revenue due to "difficult markets", although annual adjusted pre-tax profit would come in marginally ahead of expectations of £241m.

Market Movers

FTSE 100 (UKX) 10,100.64 1.36%

FTSE 250 (MCX) 21,496.61 1.71%

techMARK (TASX) 5,634.10 1.06%

FTSE 100 - Risers

ICG (ICG) 1,559.00p 4.84%

Croda International (CRDA) 2,863.00p 4.48%

Antofagasta (ANTO) 3,517.00p 3.99%

Anglo American (AAL) 3,175.00p 3.96%

Fresnillo (FRES) 3,326.00p 3.69%

Barratt Redrow (BTRW) 272.20p 3.65%

Barclays (BARC) 397.25p 3.45%

Pershing Square Holdings Ltd NPV (PSH) 4,106.00p 3.43%

Standard Chartered (STAN) 1,627.00p 3.24%

Lion Finance Group (BGEO) 9,740.00p 3.23%

FTSE 100 - Fallers

BT Group (BT.A) 203.90p -1.74%

Experian (EXPN) 2,535.00p -1.25%

Shell (SHEL) 3,425.50p -0.98%

Pearson (PSON) 947.40p -0.55%

Relx plc (REL) 2,421.00p -0.45%

Admiral Group (ADM) 3,148.00p -0.38%

Tesco (TSCO) 457.00p -0.35%

Vodafone Group (VOD) 109.90p -0.18%

Coca-Cola Europacific Partners (DI) (CCEP) 6,970.00p -0.14%

Beazley (BEZ) 1,265.00p -0.08%

FTSE 250 - Risers

W.A.G Payment Solutions (EWG) 107.00p 8.30%

Pan African Resources (PAF) 137.60p 7.00%

BlackRock World Mining Trust (BRWM) 896.00p 6.54%

Bellway (BWY) 1,867.00p 6.24%

Bytes Technology Group (BYIT) 268.40p 5.68%

IP Group (IPO) 54.90p 5.37%

Endeavour Mining (EDV) 4,346.00p 5.28%

Spire Healthcare Group (SPI) 150.60p 5.02%

Wetherspoon (J.D.) (JDW) 602.50p 4.69%

THG (THG) 30.44p 4.48%

FTSE 250 - Fallers

RS Group (RS1) 556.00p -5.20%

Ceres Power Holdings (CWR) 301.00p -2.08%

Harbour Energy (HBR) 290.00p -1.29%

Diversified Energy Company (DI) (DEC) 1,256.00p -1.26%

Moonpig Group (MOON) 211.00p -0.71%

Gamma Communications (GAMA) 732.00p -0.41%

Capital Gearing Trust (CGT) 5,030.00p -0.40%

Plus500 Ltd (DI) (PLUS) 4,194.00p -0.38%

BH Macro Ltd. GBP Shares (BHMG) 421.50p -0.35%

Keller Group (KLR) 1,974.00p -0.20%