London's FTSE 100 gains on Mideast de-escalation bets

Wed, 25th Mar 2026 16:50

March 25 (Reuters) - The UK's FTSE 100 ⁠closed higher on Wednesday, as investors bet on a de-escalation in the U.S.-Israeli war with Iran, while assessing domestic inflation data.

Iran is still reviewing ‌a U.S. proposal to end the war in the Gulf, despite an initial response ⁠that was negative, a senior Iranian official told Reuters ⁠on Wednesday, indicating that Tehran has so far stopped short of rejecting it outright.

The blue-chip FTSE 100 index closed up 1.4% and the midcap FTSE 250 added 1.6%.

* British consumer price inflation held ‌at 3.0% in February, unchanged from January's rate, official figures showed on Wednesday, ahead of a likely upward lurch as war in the Middle East pushes up prices.

* Markets have priced in two or three quarter-point hikes this year, with the Bank of England sharply increasing its inflation forecast, predicting it would ‌rise towards 3.5% by the middle of the year.

* BoE policymaker Megan Greene said she had not been close to ‌voting to raise borrowing costs at last week's interest rate-setting meeting, which was dominated by the economic hit from the conflict in the Middle East.

* Miners rose 4.2% as gold prices gained after a drop in oil prices eased inflation and rate ‌concerns, while banks climbed 2.4%, with both sectors delivering the biggest boost.

* The energy sub-index finished flat after oil prices fell on prospects of a ceasefire in the Middle East ⁠war. Oil ⁠major Shell fell 0.8%.

* EnQuest fell 4.7% after ‌the North Sea-focussed oil producer maintained its 2026 production outlook, banking on investments in Britain and Southeast Asia, after Britain's windfall levies hit last year's post-tax profit.

* ASOS rose ‌13% after the online retailer reported a 50% jump in first-half profit, helped by cost cuts, app improvements and a sharper fashion offering. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shreya Biswas and Gareth Jones)