London’s FTSE indexes experienced an uptick on Tuesday, following three consecutive sessions of decline, as U.S. President Donald Trump indicated that the conflict in the Middle East might be nearing resolution. The blue-chip FTSE 100 gained 1.6% by 1015, while the mid-cap FTSE 250 added 1.9%. If both indexes maintain their gains, it would signify their most substantial one-day increase in almost a year.

Trump’s remarks on Monday resulted in a nearly 7% decline in oil prices, despite Iran’s Revolutionary Guards asserting that they would not permit “one litre of oil” to be exported from the Middle East if U.S. and Israeli assaults persist. 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%.

In the interim, expectations surrounding interest rates have exhibited considerable volatility, as market participants are now divided regarding the likelihood of the Bank of England implementing at least one rate cut this year, following a brief consideration of a rate hike on Monday, as indicated by LSEG data. Standard Chartered and Morgan Stanley have postponed their predictions for a rate cut until the second quarter, citing inflationary pressures stemming from the Middle East conflict, which has resulted in the FTSE 100 trading 4.6% below its record high reached in late February.

The Bank of England is anticipated to announce its interest rate decision on March 19. In the latest data, British consumer spending exhibited modest growth in the previous month, as households expressed increasing pessimism regarding the economic outlook, driven by concerns over inflation, according to surveys. In corporate news, Persimmon opens new tab rose 6.3% after the home builder stated it anticipates delivering more homes in 2026, with profits likely at the top end of estimates. Domino’s Pizza opens new tab rose 3% as the fast-food chain bets on its new fried chicken brand to drive growth beyond pizza.