Anglo American and Antofagasta lead the charge as energy cost fears ease and risk appetite returns to global markets
The mining sector has roared back to life after President Trump announced a five-day ceasefire in hostilities against Iran, catapulting the sector's heavyweights to the top of the FTSE 100 leaderboard.
Anglo American PLC (LSE:AAL) has jumped 5% and Antofagasta PLC (LSE:ANTO) is up 4%, a sharp reversal for two stocks that had been nursing heavy losses as the Middle East crisis dragged on.
The rebound reflects two things happening simultaneously. First, the ceasefire has taken the edge off energy costs.
Miners are ferocious consumers of power and fuel, and the prospect of oil and gas prices easing from their crisis highs directly reduces one of the sector's biggest cost lines. When energy is expensive, margins compress fast.
Second, the announcement has restored some confidence in the global demand outlook.
The Iran crisis had rattled commodity markets, raising fears that prolonged disruption would slow industrial activity and crimp demand for metals like copper, which is central to both Antofagasta's business and Anglo American's portfolio.
A de-escalation changes that calculus.
Copper, often treated as a proxy for global economic health, has responded positively to the news, rising 1.6% and lending further support to both stocks.
The FTSE 100 itself has swung dramatically, recovering from a loss of more than 200 points to trade up 50 points on the session.