UK FTSE 100 gains on mining stocks as Middle East peace hopes weigh on oil

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Ashutosh Sureka

02.06.2026

UK FTSE 100 gains on mining stocks as Middle East peace hopes weigh on oil — FTSE 100 climbs on miners

London equities trade higher on June 2, with mining shares supporting the blue-chip index as base metal prices strengthen. The move also comes as lower oil prices pressure energy stocks amid renewed attention on possible de-escalation between the U.S. and Iran and a partial ceasefire involving Lebanon, Hezbollah and Israel.

Highlights

FTSE 100 rises 0.4% to 10,377.4 points by 1129 GMT, led by a 2% rally in Glencore, Anglo American and Rio Tinto as copper prices hit a two-week high.
Oil and gas stocks drop 0.8% as crude prices weaken following U.S.-Iran talks and a partial Lebanon-Israel ceasefire, dampening oil-linked shares.
GB Group falls 9.9% after posting an annual loss tied to a 73.1 million pound impairment, while British American Tobacco drops 2.9% despite raising vape revenue forecasts.

Market drivers lift London indexes

As reported by Reuters, the FTSE 100 rises 0.4% to 10,377.4 points by 1129 GMT and is set to break a three-day losing streak if gains hold, while the FTSE 250 adds 0.8%. Industrial metal miners lead the advance, with Glencore, Anglo American and Rio Tinto each up around 2% as copper prices reach their highest level in more than two weeks.

Precious metal miners also gain 1.8% as gold prices rise about 1%. Data from the Bank of England shows British lenders approve the most mortgages in 15 months in April, while consumer credit expands faster than expected, helping homebuilder shares climb 1.5%.

Energy weakness and company moves shape sentiment

Oil and gas stocks fall 0.8% as crude prices come under pressure after U.S. President Donald Trump says talks with Iran are ongoing. Lebanon also announces a partial ceasefire between Hezbollah and Israel, reinforcing hopes of lower regional tensions that weigh on oil-linked shares.

Among individual stocks, British American Tobacco lifts its forecast for revenue from smoking alternatives such as vapes after a significant U.S. policy shift, but keeps group-wide guidance unchanged, and its shares drop 2.9%. GB Group slides 9.9% after the identity technology company posts an annual loss linked to a 73.1 million pound impairment charge.

In fixed income and currency markets, British government bond yields edge slightly lower across the curve, while sterling firms 0.1% against the dollar.

Our earlier coverage of Bank of England lending data focused on the rise in UK mortgage approvals in April alongside faster-than-expected growth in unsecured consumer credit. We noted that despite the pickup in borrowing, higher mortgage rates and weaker sentiment were still weighing on house prices and buyer demand, pointing to a mixed backdrop for the housing market.

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