UK stocks rise for the week on US-Iran ceasefire hopes

Major stock indices in the United Kingdom recorded weekly gains on Friday, as investors reacted to a temporary ceasefire between the United States and Iran. The blue-chip FTSE 100 ended the day flat at 10,600.5 points, securing its third consecutive weekly advance, while the midcap FTSE 250 climbed 0.7% to mark its second week of gains. Market sentiment remained cautiously optimistic as traders looked toward peace negotiations set to take place in Islamabad, the capital of Pakistan, this weekend. While the two-week ceasefire provided a temporary reprieve, the geopolitical situation remains complex. The Strait of Hormuz stayed closed on Friday, and reports of fire exchanged between Israel and Hezbollah in Lebanon were noted. Both Washington and Tehran have labeled these incidents as breaches of the ceasefire agreement. The initial announcement of the truce helped lower energy costs earlier in the week, though Brent Crude Oil continues to trade near $100 per barrel as supply routes through the Gulf remain restricted. On the macroeconomic front, data showed that consumer price inflation in the United States reached a four-year high, though core inflation measures excluding food and energy showed only a moderate increase. In corporate news, AO WORLD PLC shares rose 7% after the electronics retailer announced that annual profits are expected to hit the top of its previous forecast range. The company attributed this performance to market share gains across its primary consumer categories. Conversely, B&M EUROPEAN VALUE RETAIL SA saw its shares fall 4.6% following the news that interim CFO Helen Cowing had resigned after less than five months with the firm. The defense sector faced pressure, with BAE SYSTEMS PLC shedding 3.3%. However, the aviation sector saw a significant boost as WIZZ AIR HOLDINGS PLC surged 7.2%. This rally followed reports indicating that the lead negotiator for Ukraine observed tangible progress toward a potential peace settlement with Russia.