04.06.202615:46:00UTC+00FTSE 100 Ends Higher on Middle East Ceasefire Hopes

London’s FTSE 100 erased early losses to finish marginally higher at 10,347 on Thursday, tracking gains across European markets as investors welcomed signs of easing tensions in the Middle East. The UK blue-chip index, however, lagged behind its regional counterparts as losses in major oil companies and Asia-focused banks capped the advance.

Risk sentiment improved after Israel and Lebanon agreed to a ceasefire, boosting hopes for a broader de-escalation in the region. Adding to the shift in tone, the Republican-controlled US House of Representatives voted to end military operations against Iran, marking a rare challenge to President Trump’s administration.

Energy stocks came under pressure from lower crude prices, with Shell slipping 1.5% and BP down 0.3%. At the same time, investors scaled back expectations for additional interest rate hikes by the Bank of England.

Among the biggest decliners, Prudential tumbled 7.6%, Standard Chartered fell 3.1%, and HSBC lost 2.0% following reports that some banks had halted the opening of Hong Kong accounts for mainland Chinese clients, a key conduit for overseas investment flows.