The FTSE 100 advanced 0.6% on Monday, snapping a three-session losing streak. The index was buoyed by a pause in the recent oil rally, as optimism grew that more tankers might be able to transit the Strait of Hormuz and that major economies could tap additional strategic reserves.
While traffic through the strait remains close to a standstill amid the conflict in Iran, US crude prices eased to around $95 per barrel after a small number of vessels resumed passage, easing fears over renewed inflationary pressure.
Gold miners outperformed, with Endeavour up nearly 3% and Fresnillo adding 0.9%. Among financials, NatWest rose 1.8% and HSBC Holdings gained 1.3%. Energy heavyweights Shell and BP each advanced more than 1%, and other blue chips including Unilever, Rolls-Royce and BAT climbed between 0.9% and 1.2%. In contrast, National Grid slipped about 1.1%.