The FTSE 100 climbed to a new six-month high for the year this morning as oil giants saw shares rise as oil prices rocketed.
The blue chip index rose 0.4 per cent in early trading to 7,490 points – its highest since 3 October.
Shell – 1.8 per cent up – and BP – up 1.7 per cent – led the risers after US President Donald Trump called an end to exemptions on Iran oil sanctions, sending oil prices soaring.
A number of the world’s largest importers, including China, India, Japan, South Korea and Turkey had been exempt from US sanctions on Iran but the waivers will now be dropped by the end of May.
Brent crude has now risen to $74.4 per barrel from $71.1 last week as the six-month waivers come to an end.
Airline Easyjet was the sharpest faller on the FTSE 100, dropping 3.7 per cent following reports some flights could be affected by potential strike action from French pilots.
Shares in its rival Thomas Cook soared 17 per cent this morning on reports it has held preliminary takeover talks with a string of potential suitors.
Neil Wilson, analyst at markets.com, said: “Rising oil prices look set to be the bulwark for another positive session in Europe as the main indices cement multi-month highs.
“Both the DAX and FTSE 100 are looking very perky although momentum indicators do point to them being overbought at present and potentially ripe for a pullback.”