The FTSE 100 index rose by 1.2% to 7,563.45 on Wednesday, its highest level in nearly six months, as news of ceasefire talks between Russia and Ukraine boosted sentiment in global markets.
The talks, which are set to begin in the coming days, have been welcomed by investors, who have been seeking a resolution to the conflict that has been weighing on the global economy.
Meanwhile, oil prices dropped to their lowest level in over a year, with Brent crude falling to $83.15 a barrel and US crude dipping to $78.40 a barrel.
The decline in oil prices is likely to provide a welcome boost to UK households, who have been struggling with high energy bills.
According to data from the Office for National Statistics (ONS), the average annual household energy bill in the UK has risen by 54% over the past year, to £1,972.
However, the decline in oil prices also has implications for the UK's energy producers, who have seen their profits rise significantly in recent months.