FTSE jumps 1.6% as Middle East tensions soften

The FTSE 100 bounced back as geopolitical tensions eased, with neither Israel nor Iran launching fresh retaliatory attacks over the weekend while the US passed a crucial aid package for Ukraine.

Fears of a Russian victory over Ukraine have dissipated, with the long-awaited passing of the $60.8bn (£49.2bn) funding deal by the US House of Representatives, Hargreaves Landown’s head of money and markets Susannah Streeter said. The legislation also contains $26bn for Israel and $8.12bn for the Indo-Pacific, including Taiwan.

In line with the easing of tensions, gold fell over 1% to $2,362 per ounce while Brent crude also dropped towards a four-week low of $85 per barrel.