London Stocks Surge Post-Ceasefire as Travel Stocks Soar

London's stock markets surged on Tuesday, driven by broad-based gains after a ceasefire between Israel and Iran brought an end to a 12-day conflict. The resolution eased investors' concerns and lowered oil prices, prompting a rally in travel and leisure stocks.

The internationally focused FTSE 100 rose 0.4% by 1000 GMT, while the FTSE 250 midcap index advanced 0.9%, achieving its highest mark in over a week. Airline stocks led the gains, with British Airways owner IAG and EasyJet soaring over 5%, and other travel components such as Wizz Air and Jet2 also climbing.

Despite the ceasefire signals, tensions lingered as Israel announced retaliatory actions against an alleged violation, a claim Iran denied. Meanwhile, commodity prices reacted to the truce, with energy giants BP and Shell facing declines, while a separate report indicated rising grocery price inflation and contracting manufacturing orders.

(With inputs from agencies.)