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Mining companies led the FTSE 100 and FTSE 250 higher on Wednesday as metals prices rose following a US-Iran agreement for a two-week ceasefire. Copper miner Antofagasta PLC (LSE:ANTO) jumped 12.6%, while copper-focused Anglo American PLC (LSE:AAL) rose more than 10%. Precious metals specialist Fresnillo PLC (LSE:FRES) also recorded a similar gain.
Among other blue-chip miners, gold miner Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) climbed 5.7%, Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) gained 4.2%, and Glencore PLC (LSE:GLEN) was flat.
On the FTSE 250, RHI Magnesita NV (LSE:RHIM), Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF), Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY) and Atalaya Mining (LSE:ATYM, TSX:AYM) all rose by more than 7%.
Spot gold rose to above $4,800 an ounce, after trading below $4,650 the previous day. Silver increased by more than 5.5% to above $77 an ounce, its highest level in three weeks, and copper prices were similarly boosted.
Prices moved after US President Donald Trump and Iran’s foreign minister said a two-week ceasefire had been agreed between Washington and Tehran, with Israel also agreeing to hold fire. Capital.com market analyst Daniela Hathorn said: “While this does not guarantee a lasting resolution, it provides both sides with a potential off-ramp and has already begun to ease some of the immediate pressure on global markets.”
Oil prices fell sharply, with the potential reopening of the Strait of Hormuz viewed as the most significant development for markets. Hathorn added: “The disruption had removed as much as 20% of global oil supply, and even a partial restoration of flows represents a major shift in supply dynamics. This has allowed markets to begin pricing out some of the extreme risk premium that had built up in recent weeks, helping to stabilise oil prices and support risk sentiment more broadly.”

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