The FTSE 100 index saw a surge in bank stocks on Thursday following US President Donald Trump's decision to call off planned military strikes against Iran.
The surprise move sparked a relief rally, with investors breathing a sigh of relief that a potential conflict in the Middle East had been averted.
US President Trump tweeted on Thursday morning that he had cancelled the planned strikes, citing that they did not serve the interests of the United States.
The decision to scrap the strikes came after a US drone was shot down by Iran, which had raised tensions between the two nations.
UK bank stocks, including HSBC and Barclays, saw significant gains as a result of the relief rally, with investors seeking safer assets in the wake of the potential conflict being averted.
The UK Government has yet to comment on the decision, but Foreign Secretary Dominic Raab is set to make a statement to Parliament on Thursday afternoon.
The decision to scrap the strikes is expected to have significant implications for global markets, with many investors seeking safe-haven assets in the wake of the potential conflict.