FTSE 100 Rallies on Eased Middle East Tensions

The FTSE 100 index closed higher on Monday as investors breathed a sigh of relief following a temporary reduction in tensions between the US and Iran.

The escalation of hostilities had raised concerns over energy supplies, but the pause in airstrikes led to a sharp drop in oil prices. Brent crude for September delivery fell below $90 a barrel, trading at $89.71, down from $95.49 on Friday's close.

However, analysts cautioned that while tensions have eased, the underlying conflict remains unresolved, making it difficult for oil prices to continue falling.

Vodafone led the gains in the FTSE 100, rising 4.8% after upgrading its full-year earnings guidance. AstraZeneca also added 1.7% after reporting second-quarter earnings ahead of market expectations.