Finance
Britain's FTSE indexes rebound as trump hints at end to middle east war
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
FTSE 100 rose 1.6% and FTSE 250 gained 1.9% on March 10, 2026, as markets cheered Donald Trump’s suggestion that the Middle East war could be ending; oil prices fell nearly 7%, aiding the rally, though energy stocks lagged.
FTSE Indexes Surge as Trump Signals Possible End to Middle East Conflict
Market Reactions and Economic Impacts
FTSE Indexes Rebound After Declines
March 10 (Reuters) - London's FTSE indexes rose on Tuesday, after three sessions of declines, as U.S. President Donald Trump suggested that the Middle East war could be close to ending.
The blue-chip FTSE 100 gained 1.6% by 1015 GMT, while the mid-cap FTSE 250 added 1.9%. If both indexes hold their gains, it would mark their biggest one‑day rise in nearly a year.
Oil Prices and Energy Sector Performance
Trump's comments on Monday led to a nearly 7% slump in oil prices, even as Iran's Revolutionary Guards said they would not allow "one litre of oil" to be shipped from the Middle East if U.S. and Israeli attacks continue. [O/R]
Most major British subsectors were in the green, except the energy index, which fell 2.1%, with oil majors Shell down 1.7% and BP sliding 2.9%.
Interest Rate Expectations and Economic Outlook
Bank of England Rate Decision
Meanwhile, interest rate expectations stayed volatile, with traders now evenly split on whether the Bank of England will cut interest rates at least once this year after briefly pricing in a hike on Monday, according to LSEG data.
Forecasts and Inflation Risks
Standard Chartered and Morgan Stanley delayed their forecast for a rate cut to the second quarter, amid inflation risks from the Middle East conflict that pushed the FTSE 100 4.6% below its record high in late February.
The BoE is expected to deliver its interest rate decision on March 19.
Consumer Spending Trends
Meanwhile, British consumer spending grew slowly last month as households turned more pessimistic about the economic outlook amid inflation worries, surveys from Barclays and the BRC showed.
Corporate News Highlights
Persimmon's Positive Outlook
In corporate news, Persimmon rose 6.3% after the home builder said it expects to deliver more homes in 2026, with profits likely at the top end of estimates.
Domino's Pizza Bets on Growth
Domino's Pizza rose 3% as the fast-food chain bets on its new fried chicken brand to drive growth beyond pizza.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair)
Key Takeaways
- •FTSE 100 and FTSE 250 experienced their biggest single-day gains in nearly a year amid easing Middle East war fears (apnews.com).
- •Oil prices plunged roughly 7% from highs above $119 as Trump said the Iran conflict might be nearly over (apnews.com).
- •Energy shares underperformed: FTSE energy sector fell ~2%, with Shell down 1.7% and BP down 2.9%, reflecting continued sector pressure despite broader gains (coincentral.com).
- •Interest rate expectations remain volatile; previous rate-hike pricing reversed, and rate-cut predictions shifted back into play for later in 2026 (marketscreener.com).
- •Persimmon shares jumped 6.3% on guidance of ~12,000 home completions in 2026 and profits at the top end of forecasts, while Domino’s Pizza rose 3% on expansion into fried chicken (marketscreener.com).
References
Frequently Asked Questions about Britain's FTSE indexes rebound as Trump hints at end to Middle East war
1Why did the FTSE 100 and FTSE 250 rise on March 10?
Both indexes rose due to optimism from President Trump’s remarks on a possible end to the Middle East conflict, reversing prior declines.
2How did oil prices react to Trump's comments on the Middle East?
Oil prices slumped nearly 7% after Trump suggested the Middle East war could be ending.
3Which British stock sectors were affected during this market movement?
Most sectors gained except the energy index, with major oil companies like Shell and BP falling.
4What is the current outlook on UK interest rates?
Traders are split on a rate cut possibility, with expectations volatile ahead of the Bank of England's March 19 decision.
5Which companies had notable share price movements?
Persimmon saw a 6.3% gain with strong outlooks, and Domino's Pizza rose 3% betting on its new fried chicken brand.
