The FTSE 100 has shrugged off fears of a resumption of hostilities in the Middle East, as a spike in oil prices sent energy and defensive stocks higher.

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Investors’ reaction to the resumption of hostilities was helping fuel a downturn in the world’s financial markets.

The FTSE 100 has shrugged off fears of a resumption of hostilities in the Middle East, as a spike in oil prices sent energy and defensive stocks higher.

The FTSE 100 closed up 5.15 points at 10,373.20.

Oil prices also fell after US President Donald Trump said negotiations over a peace deal to end the Middle East war were in their final stages.

Welcome back to the City AM liveblog - for your top news updates and analysis from the FTSE 100 and other UK markets.

Market sentiment remained wary following fresh US military action against Iran.

Welcome back to the City AM liveblog - for your top news, updates and analysis from the FTSE 100 and other UK markets.