The FTSE 100 ended the week to April 10 with a gain of approximately 1.6%, closing at 10,595, having navigated one of the most volatile sequences in recent months as the US-Iran ceasefire announcement triggered a powerful single-session surge on April 8 before markets pulled back into cautious consolidation as doubts mounted about the deal’s durability.
The index’s twelve-month return heading into this weekend stood at approximately 33.7%, a remarkable run for a benchmark historically associated with relative defensiveness, driven by the unusual combination of defence sector re-ratings, mining stock gains, and energy price inflation that has characterised 2026.
Wednesday’s ceasefire session was the standout moment of the week. The FTSE 100 surged more than 2.5% to close at 10,608 as oil prices fell sharply — WTI dropped around 16% on the day — and risk appetite returned across global markets.
Antofagasta, the Chilean copper miner listed in London, jumped more than 12%, while EasyJet gained nearly 11% as lower jet fuel costs were priced into airline economics. Rolls-Royce, Anglo American, and Fresnillo each advanced between 9% and 10%, with the broad diversity of winning sectors reflecting just how deeply the Iran conflict had been suppressing non-energy stocks across the market. The clear losers that day were BP, which dropped around 8%, and Shell, which fell approximately 6.3%, as the prospect of restored Strait of Hormuz flows undermined the oil price premium that had supported both stocks through weeks of conflict.
By Friday the picture was more complicated. BP and Shell partially recovered their losses as it became clear the strait remained largely blocked despite the ceasefire, and Iran’s Revolutionary Guard issued fresh restrictions on tanker traffic in protest at Israeli strikes on Lebanon.
BAE Systems fell 2.8% on Friday and was among the week’s notable laggards in what some analysts characterised as profit-taking after an exceptional run rather than a structural reassessment of the company’s position. Compass Group fell 1.9% following a weak trading update from French rival Sodexo, which served as a reminder that some of the FTSE 100’s non-commodity names carry their own company-specific risks amid the geopolitical noise.
The FTSE 100’s composition has provided unusual insulation from the conflict’s worst effects relative to the DAX and CAC 40, both of which have been harder hit by European energy dependency and weaker domestic economic conditions.
Friday’s session saw the FTSE 100 move broadly flat while German and French markets posted larger declines, a divergence that has characterised multiple sessions in 2026 and reflects the London market’s heavier weighting toward mining, energy, and global financials.
The index sits approximately 2-3% below its all-time high of 10,934 set on February 27, with the Bank of England’s rate decision on April 30 and a heavy corporate earnings calendar — including BP, Barclays, AstraZeneca, Lloyds, and GlaxoSmithKline — set to drive the next wave of direction.
