The Ftse 100 and other stock market indexes have rebounded after President Donald Trump hinted the US-Iran will come to an end "very soon".
Speaking to journalists, President Trump suggested the United States may end its military operation in the Middle East "within two weeks, maybe three".
This appears to have provoked a strong market response, with London's benchmark index surging 1.89 per cent, nearly 200 points, by midday.
Similarly, Germany's DAX jumped 2.8 per cent and the French CAC returned to the green with a 2.3 per cent surge, with the pan-European STOXX 600 up 2.4 per cent this morning.
The Ftse 100 has jumped in response to President Trump's comments
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Across the pond, Wall Street futures are on the rise with the S&P up 0.7 per cent in pre-trading while the Nasdaq and Dow inching higher by one per cent and 0.6 per cent, respectively.
Amid today's market volatility, the British pound is sitting at 0.4 per cent against the US dollar at $1.3779.
David Morrison, a senior market analyst at financial services provider Trade Nation, said: "European stock indices opened in positive territory, boosted by early gains across the US stock index futures.
"The rally came despite continued strength across oil markets which saw front-month WTI break and hold above resistance around $100 per barrel. Yet Brent crude managed to hold below its own band of resistance around $110."
The stock market has been volatile since Trump returned to office | ReutersLATEST DEVELOPMENTS
Smoke rises from a fire, as the Israel-Iran air war continues, in Tehran, Iran | REUTERSRuss Mould, an investment director at AJ Bell, shared: "The market appears increasingly optimistic that an end to the war in Iran is in the offing as big gains in the US and Asia were matched in Europe on Wednesday morning.
“The Ftse 100 is now firmly ensconced above the 10,000 mark and nearly five per cent above its lows last week while Brent crude oil prices have dropped below $100 per barrel. European gas prices are in retreat and government bond yields are also easing back.
"President Trump’s messaging that the war will be over in a couple of weeks and the clearest indication yet that Iran also wants to end the fighting are being seized on by investors. Eyes are likely to be glued to television screens later when Trump is set to address the American people."
Concerningly, the UK manufacturing PMI eased to 51 for March 2026, coming in under 51.4 "flash" estimate and down from 51.7 in February.
How long has it taken for the Ftse to reach every 1,000 mark? | AJ BELLThe data, which was collected between March 12 and 26, represents the first contraction of UK manufacturing output in six months, analysts claim.
Rob Dobson, director at S&P Global Market Intelligence, added: "The impact of the war also caused noticeable shifts in the cost and supply chain backdrop.
"The resulting high-cost environment and shortages of inputs were also factors stymying production volumes. The darker economic and geopolitical backdrop is also weighing on business confidence and hiring trends.
"Optimism about the year ahead has slumped to a six-month low, and the latest round of job cuts is the deepest since last September."