Shares in heavyweight miners, including Anglo American PLC (LSE:AAL) and Fresnillo PLC (LSE:FRES), topped the FTSE 350 leaderboard on Wednesday as metals prices rose on hopes of easing tensions in the Middle East.
The moves followed gains in metals prices, with gold up 2.6%, silver rising 4.6% and copper gaining 2.0%, while oil prices fell by a similar amount.
The rally came after Donald Trump said he would pause efforts to move ships through the Strait of Hormuz to allow negotiations with Iran, raising hopes of de-escalation in the region.
Among the blue-chips, Anglo American climbed 6.1%, Fresnillo 5.8%, Endeavour Mining PLC (LSE:EDV) 4.9% and Antofagasta PLC (LSE:ANTO) 4.7%, while Pan African Resources PLC (LSE:PAF) and Hochschild Mining PLC (LSE:HOC) topped the mid-cap risers as they both jumped over 6%.
Investors rotated back into cyclical sectors, with banks also advancing, as the prospect of a diplomatic breakthrough boosted sentiment across global markets.
President Trump made the announcement overnight on social media, which he said was based on requests from Pakistan and other countries and came after "great progress has been made toward a complete and final agreement with representatives of Iran."
He said: "We have mutually agreed that, while the blockade will remain in full force and effect, Project Freedom (the movement of ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the agreement can be finalised and signed."
European stock markets advanced broadly, with the FTSE 100 and DAX both rising over 1%.