London's FTSE 100 gains on Mideast de-escalation bets
March 25 (Reuters) - The UK's FTSE 100 closed higher on Wednesday, as investors bet on a de-escalation in the U.S.-Israeli war with Iran, while assessing domestic inflation data.
Iran is still reviewing a U.S. proposal to end the war in the Gulf, despite an initial response that was negative, a senior Iranian official told Reuters on Wednesday, indicating that Tehran has so far stopped short of rejecting it outright.
The blue-chip FTSE 100 index .FTSE closed up 1.4% and the midcap FTSE 250 .FTMC added 1.6%.
British consumer price inflation held at 3.0% in February, unchanged from January's rate, official figures showed on Wednesday, ahead of a likely upward lurch as war in the Middle East pushes up prices.
Markets have priced in two or three quarter-point hikes this year, with the Bank of England sharply increasing its inflation forecast, predicting it would rise towards 3.5% by the middle of the year.
BoE policymaker Megan Greene said she had not been close to voting to raise borrowing costs at last week's interest rate-setting meeting, which was dominated by the economic hit from the conflict in the Middle East.
Miners .FTNMX551030 rose 4.2% as gold prices gained after a drop in oil prices eased inflation and rate concerns, while banks .FTNMX502010 climbed 2.4%, with both sectors delivering the biggest boost. MET/L
The energy sub-index .FTNMX601010 finished flat after oil prices fell on prospects of a ceasefire in the Middle East war. Oil major Shell SHEL.L fell 0.8%. O/R
EnQuest ENQ.L fell 4.7% after the North Sea-focussed oil producer maintained its 2026 production outlook, banking on investments in Britain and Southeast Asia, after Britain's windfall levies hit last year's post-tax profit.
ASOS ASOS.L rose 13% after the online retailer reported a 50% jump in first-half profit, helped by cost cuts, app improvements and a sharper fashion offering.
