British stocks experienced an uptick on Tuesday following a report indicating that the U.S. was seeking to resolve the Middle East conflict. However, the primary indexes were poised for their most significant monthly decline since 2020, as investor concerns about the repercussions of the war persisted. Global equities experienced a rebound following a report regarding the U.S. President Donald Trump informed his aides of his readiness to suspend the military campaign against Iran, even in the event that the Strait of Hormuz remained predominantly closed.

The blue-chip index FTSE 100 rose 0.6% by 1057 but was poised to snap an eight-month winning streak, while the mid-cap FTSE 250 climbed 1.1%, aiming to end a three-month run of gains. Most sub-indexes were in the green, except energy, which fell 0.3% after oil prices turned volatile as investors weighed the possibility that the five-week-long war could end. Precious metals miners rose 2.2% and provided the biggest boost to the index as gold prices climbed, with investors flocking to the safe haven amid inflation fears and expectations of a hawkish monetary policy response.

In March, British shop price inflation rose to 1.2%, as the BRC cautioned that cost pressures stemming from conflicts in the Middle East were beginning to impact supply chains, potentially leading to further price increases. The Bank of England is attentively observing food prices, given that public inflation expectations surged to their peak since 2023 in March, thereby amplifying caution regarding the policy outlook. Data indicated that British house prices experienced a greater-than-anticipated increase in March. However, the housing market is expected to decelerate as rising borrowing costs, influenced by the Iran war, affect affordability.

Raspberry Pi soared 26.8% after the single-board computer maker posted better-than-expected rise in annual adjusted core earnings. Unilever opens new tab rose 0.2% after the consumer goods firm said it was in advanced talks to combine its food business with spice maker McCormick in a potential deal that would deliver $15.7 billion in cash and give shareholders majority control of the merged entity.