Travel and aerospace stocks led gains in London on Wednesday after the US-Iran ceasefire relieved tension across the sector.
Wizz Air Holdings PLC (AIM:WIZZ) and easyJet PLC (LSE:EZJ) were among the strongest FTSE 350 performers, rising more than 13% and 10% respectively, while cruise operator Carnival PLC (LSE:CCL) gained close to 10% and British Airways owner International Consolidated Airlines Group SA (LSE:IAG) advanced 8.5%.
Rolls-Royce Holdings PLC (LSE:RR.), the aircraft engine maker, climbed 9.5%, and GKN Aerospace parts maker Melrose Industries PLC (LSE:MRO, OTC:MLSPF) rose 8.9%.
The moves came after the US and Iran agreed a two-week ceasefire, easing concerns over disruption to global energy supplies. Lower perceived risk in oil markets tends to support airlines, where fuel is a major cost.
Analyst Richard Hunter at Interactive Investor said crude oil prices remains 28% higher since the beginning of the conflict and 53% up since the beginning of the year.
"Given the backlog of supply and the damage already wrought on some energy infrastructure in the region, however, it may take some time for the price to find its new natural level."
He said the ceasefire news is "undeniably positive but the finishing line has not yet been crossed. There will continue to be market reaction as updates on the negotiations are released, and the two-week timeframe adds pressure for a fully agreed resolution."