FTSE 100 Rises 0.7% as Mining Stocks Surge on Iran Peace Hopes, May 27

The FTSE 100 climbed 0.7% to 10,526.73 on May 26 as mining stocks rallied on expectations of a US-Iran peace deal. Brent crude rose 2.35% to $98.40 per barrel after geopolitical tensions eased. However, BP’s abrupt removal of chairman Albert Manifold over conduct issues dampened sentiment in the energy sector, with BP shares falling 4% to 529p.

Mining Stocks Drive Index Higher

The FTSE 100’s mining-heavy composition benefited from rising oil prices and investor optimism about Middle East stability. Shares in mining companies like Glencore and Endeavour Mining climbed as traders reduced bets on prolonged supply disruptions. The pan-regional Stoxx 600 fell 0.20% to 630, showing the UK index outperformed European peers.

BP Chairman Ousted Over Conduct

BP removed chairman Albert Manifold with immediate effect after the board cited “serious concerns” over governance and conduct. Manifold, appointed in October 2025, lasted just eight months. His share price fell more than 9% briefly before closing down 4%. Market data shows BP shares ended at 529p, down 22.2p. Reports indicated Manifold’s management style was seen as overly aggressive by colleagues, including new CEO Meg O’Neill.

Oil Price Swings on Geopolitical Shifts

Brent crude jumped 2.35% to $98.40 after US forces fired on Iranian vessels near the Strait of Hormuz. Earlier, hopes for a US-Iran peace deal had pushed oil down 6% on Monday. XTB research director Kathleen Brooks noted markets face uncertainty: a deal supports stocks, but a prolonged conflict risks long-term economic damage. Mining stocks made gains as traders hedged against inflation risks.

BP’s Governance Crisis Deepens

Manifold is the second BP senior leader ousted for conduct in three years. His predecessor, Bernard Looney, resigned in September 2023 over undisclosed personal relationships. At BP’s AGM last month, 18% of shareholders voted against Manifold’s re-election. Ian Tyler, a non-executive director, was appointed interim chairman. Lindsey Stewart at Morningstar said BP now has “the most volatile boardroom of the oil supermajors.”

Final Thoughts

The FTSE 100’s 0.7% gain reflects mining strength and oil price recovery, but BP’s leadership crisis signals deeper governance issues. Investors should monitor whether the interim chair can stabilize the company and rebuild shareholder confidence.

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