Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: April 1, 2026
Add as preferred source on GoogleFTSE 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.
March 10 (Reuters) - Stocks gained in London on Tuesday, following three sessions of declines, as oil prices pulled back after U.S. President Donald Trump suggested that the Middle East war could end soon.
The blue-chip FTSE 100 closed up 1.6%, while the mid-cap FTSE 250 added 1.8%. Both marked their biggest one‑day rise in nearly a year.
Trump's comments on Monday led to a nearly 11% drop in oil prices, even as Iran's Revolutionary Guards vowed to block any Middle East exports if U.S. and Israeli attacks continue, while Britain worked with allies to safeguard shipping. [O/R]
Global stocks have come under selling pressure since the conflict began as soaring energy prices, driven by disruption in the Strait of Hormuz, stoked fears of a resurgence in inflation.
British assets have been hit harder as investors view the country as more exposed than many other European countries to an energy price shock due in part to its weak public finances and its reliance on gas.
An official at the Office for Budget Responsibility said Britain's inflation rate could end the year at around 3% rather than the roughly 2% rate assumed by the country's fiscal forecasters if energy prices remain at current levels.
The Bank of England is expected to deliver its interest rate decision on March 19 and both Standard Chartered and Morgan Stanley delayed their forecast for a rate cut to the second quarter, citing inflation risks.
Most major subsectors made gains, except the energy index, which fell 1.2%, with oil majors Shell down 0.8% and BP 2.1% lower.
Persimmon shares rose 4.5% after the house builder said it expects to deliver more homes in 2026, with profits likely at the top end of estimates.
Domino's Pizza UK rose 0.2% as the fast-food chain bets on its new fried chicken brand to drive growth.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair and Alexander Smith)
Both indexes rose due to optimism from President Trump’s remarks on a possible end to the Middle East conflict, reversing prior declines.
Oil prices slumped nearly 7% after Trump suggested the Middle East war could be ending.
Most sectors gained except the energy index, with major oil companies like Shell and BP falling.
Traders are split on a rate cut possibility, with expectations volatile ahead of the Bank of England's March 19 decision.
Persimmon saw a 6.3% gain with strong outlooks, and Domino's Pizza rose 3% betting on its new fried chicken brand.
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