The FTSE 100 rose more than 0.5% on Friday, snapping a two-session losing streak, as oil prices eased and investors weighed the cautious stance of European central banks. Crude prices retreated after US Treasury Secretary Scott Bessent indicated that Washington may lift sanctions on Iranian oil stored on tankers in an effort to curb energy costs.
Central banks kept interest rates on hold this week, citing the conflict involving Iran as a major source of inflation uncertainty. The Bank of England signalled it stands ready to act if needed, reinforcing market expectations of tighter policy ahead. Futures markets now fully price in a rate hike by June.
Travel and leisure stocks led the gains, with EasyJet up 3% and International Airlines Group rising 2.8%. Banks also advanced, including HSBC, Lloyds and Barclays. Among blue chips, Unilever and Rolls-Royce each added more than 1%. By contrast, Shell and BP declined alongside the pullback in oil prices, while defence names such as BAE Systems and Babcock also traded lower.
For the week as a whole, the FTSE 100 remains down about 1.5%.
