The United Kingdom’s main stock indexes ended the week with gains, supported by optimism surrounding a temporary ceasefire between the United States and Iran.

The FTSE 100 index closed flat on the day at 10,600.5 points, but still recorded its third consecutive week of gains. Meanwhile, the FTSE 250 rose 0.7%, marking its second straight weekly increase.

The broader trend reflects improved investor sentiment after earlier market volatility.

As a result, UK equities showed resilience despite ongoing geopolitical uncertainty.

🌍 Ceasefire Optimism Lifts Markets

Markets reacted positively after the announcement of a two-week ceasefire, which helped ease concerns over escalating conflict in the Middle East.

Earlier in the week, global stocks rallied as oil prices declined following the ceasefire announcement. This development raised expectations of a potential reopening of the Strait of Hormuz, a key global shipping route.

However, uncertainty remains. The strait continued to face disruptions, and tensions persisted in some regions. Therefore, investor sentiment remained cautious even as markets recovered.

🛢️ Oil Prices and Conflict Still Influence Sentiment

Despite the ceasefire, oil supply concerns continued to affect markets. The flow of oil from the Gulf remained restricted, keeping prices near $100 per barrel.

At the same time, reports of continued clashes in parts of the Middle East raised doubts about the stability of the truce.

Consequently, investors balanced optimism with caution. While some relief appeared, risks linked to energy markets and inflation remained significant.

📊 Focus Shifts to US Economic Data

Investor attention has now shifted toward upcoming U.S. inflation data, which could influence global market direction.

Recent data showed that U.S. consumer prices rose at the fastest pace in nearly four years, although core inflation remained moderate.

Therefore, upcoming economic indicators will play a crucial role in shaping expectations around interest rates and economic growth.

In addition, global investors are closely monitoring how inflation trends interact with geopolitical developments.

🏢 Mixed Performance Among UK Stocks

Individual stocks showed mixed performance during the session.

• AO World shares rose about 7% after forecasting profits at the higher end of expectations
• Wizz Air jumped over 7% on optimism linked to geopolitical developments
• Meanwhile, B&M shares fell over 4% after a leadership change
• BAE Systems declined around 3.3%, reflecting pressure on defence stocks

These movements highlight how company-specific factors continue to influence market performance alongside broader trends.

🔍 Market Outlook Remains Uncertain

While UK stocks recorded gains, uncertainty continues to shape the outlook. The durability of the ceasefire and future geopolitical developments will remain key factors.

At the same time, inflation data and global economic signals will guide investor decisions in the coming weeks.

For now, the market reflects a balance between cautious optimism and ongoing risk awareness.