Barclays and Lloyds Shares Surge Amid FTSE 100 Bank Rally on Ceasefire

Bank stocks jumped sharply on Wednesday after reports of a ceasefire in the Middle East. Barclays and Lloyds led the advance as investor sentiment improved across the City.

Market movers and index gains

Barclays shares surged eight per cent at the London open, reaching highs near 438p. The move recouped some losses suffered since the Iran war began in late February.

Lloyds climbed seven per cent and rose above the 100p mark again. HSBC and NatWest also recorded strong gains, up around four and six per cent respectively.

Broader bank sector and benchmarks

The FTSE 350 bank index jumped as much as six per cent to about 8,252.97. The FTSE 100 advanced roughly 2.5 per cent to near 10,609.78 points in early trading.

The banking index had slipped about 12 per cent in recent weeks, after a strong 2025. The latest moves marked a clear rebound for the sector.

Drivers of the rally

Market momentum followed a US announcement of a two-week suspension of strikes on Iran. President Trump said talks were “very far along” and a “definitive” peace agreement was possible.

Traders welcomed news that traffic through the Strait of Hormuz could resume freely. The strait had been the main focus of recent market tensions.

Comments from analysts and firms

Chris Beauchamp, chief market analyst at IG, said equities looked “certainly euphoric.” He added gains in banks could offset losses from energy majors.

Close Brothers surged about 20 per cent at the bell to 470p. The lender said it was “well-positioned” to manage any motor finance headwinds.

Barclays and Lloyds shares surge helped spark the FTSE 100 bank rally on the ceasefire news. Filmogaz.com will follow market developments as the situation evolves.