3i Group (III), one of the big investment company fallers of the year so far, rallied more than 5% on Wednesday as the UK stock market bounced higher on reports that the US and Iran are close to a deal to end the war.

The FTSE All-Share advanced 2%, or 117 points, to 5,604, up more than 300 points from its 2026 low of 5,298 on 23 March, but still 247 points below its 5,851 peak at the end of February before the US and Israel launched a wave of air strikes against Iran.

The index was led by miners and other economically sensitive stocks hoping for a fall in energy bills and a restoration of central banks’ interest rate cutting mentality before the conflict began.

Silver miner Fresnillo (FRES) was the biggest riser, up 10%, followed by Rolls Royce (RR), BA-owner International Consolidated Airlines, house builder Persimmon and HSBC which gained 6%-9%.

3i Group (III) gained 3.8% to £26.79. The £26bn FTSE 100 private equity investor has fallen over 15% this year to stand on a 14% discount to net asset value in response to slowing growth at Action, although in January the European discount retailer that accounts for over two thirds of 3i’s portfolio said it had seen a “positive” start to the year. The derating of shares that previously stood at a big premium to NAV has seen them fall by 37% in the past year.

With European markets enjoying a similar rally, Montanaro European Smaller Companies (MTE) rose 2.7% from an 8% discount. Real estate investment trusts were in favour with Great Portland Estates (GPE), a £1.3bn central London property investor, jumping 5.2% to 318.4p.

Oil stocks retreated as Brent crude prices dropped 7.8% to $102.45 a barrel on hopes the Strait of Hormuz will reopen. BP shed 3.9% and Shell 3.2%. This followed a report by Axios that the Trump administration in the US believed it was close to getting a one-page document that could formalise their one-month ceasefire and end the war, paving the way for detailed nuclear negotiations.

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