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(Sharecast News) - London's FTSE 100 was up 0.6% at 9,948.36 in afternoon trade on Tuesday.
BP and Shell gushed higher as oil prices rose despite hopes of a resolution to the Iran conflict following US President Trump's comments on Monday.
Dan Coatsworth, head of markets at AJ Bell, said: "For now, the fighting continues and that's kept oil prices in alarm bell territory above $100 per barrel and natural gas elevated too. Though in both cases prices are below their recent highs."
3i Group gained after Citi reiterated its 'buy' rating on the stock and opened an 'upside catalyst watch' as it noted that slowing like-for-like growth at portfolio holding Action - a Dutch discount retailer - has driven 40% underperformance in the past six months.
The bank noted that 3i Group trades around 15% below its March 2026 NAV estimate, with Action's implied valuation on 20x Citi's 2027 net income estimate.
"The shares discount 3-4% LFL growth over the medium-term, requiring 1-2% LFL sales growth for mature stores," it said. "We expect slowing LFL growth to prove temporary, with rising inflation and consumer pressure instead reinforcing shifts towards discounted channels."
Persimmon and Barratt Redrow were both in the red following results from FTSE 250 peer Bellway.
The housebuilder posted a rise in first-half profit and completions and lifted its full-year volume output guidance, but trimmed its operating margin expectations for the year. It also noted that the ongoing conflict in the Middle East had led to the return of volatility in the mortgage market.
Defence firms Babcock and Rolls-Royce also lost ground.
FTSE 100 - Risers
BP (BP.) 554.90p 3.01%
Smurfit Westrock (DI) (SWR) 2,939.00p 2.77%
Convatec Group (CTEC) 223.20p 2.48%
Shell (SHEL) 3,436.50p 2.43%
3i Group (III) 2,750.00p 2.15%
BT Group (BT.A) 203.90p 2.15%
Smith & Nephew (SN.) 1,208.50p 1.73%
Games Workshop Group (GAW) 17,990.00p 1.64%
National Grid (NG.) 1,229.50p 1.57%
Associated British Foods (ABF) 1,813.50p 1.51%
FTSE 100 - Fallers
JD Sports Fashion (JD.) 67.32p -2.68%
Babcock International Group (BAB) 1,245.00p -2.60%
Flutter Entertainment (DI) (FLTR) 8,062.00p -2.34%
Rolls-Royce Holdings (RR.) 1,159.50p -2.03%
Persimmon (PSN) 1,119.50p -1.97%
Haleon (HLN) 359.50p -1.78%
Antofagasta (ANTO) 3,321.00p -1.60%
Barratt Redrow (BTRW) 263.10p -1.39%
Metlen Energy & Metals (MTLN) 34.45p -1.29%
F&C Investment Trust (FCIT) 1,197.00p -1.24%
