The price of iron ore climbed by 19 per cent to $63.74 a dry metric ton according to industry data gatherer Metal Bulletin.
The leap in the price has pushed iron ore producers Lonmin and Ferrexpo to the top of the FTSE 100, up by 14 per cent and 10 per cent respectively.
7 March 2016 @ 1:45pmLonmin (LMI)
The iron ore price is now at highs not seen since June last year and the biggest daily rise since 2009.
Oil has meanwhile gained 10 per cent since the beginning of March, jumping to over $39 dollars per barrel following US producers signalling production is beginning to flag in the face of persistently low prices.
Saudi Arabia and Russia have also buoyed the market ahead of their output freeze meeting in Russia on 20 March, which is expected to include other oil producing countries.
Venezuela and Qatar attended the last meeting and already agreed to the deal.