MARKET REPORT

LONDON’S blue-chip index was boosted by a rally in oil prices following confirmation that the US is to pull out of the Iran nuclear deal.

Donald Trump said yesterday that the US would walk away from the international agreement, raising the prospect of a fall in supply from one of the world’s largest oil exporters.

Brent crude hit its highest level for nearly three-and-a-half years, rising by 1.67% to 77.200 US dollars per barrel.

The FTSE 100, which has a large exposure to the energy industry, raced ahead of its European rivals, closing the day 1.28% or 96.77 points higher at 7,662.52. Energy firms were among the biggest winners, with BP and Royal Dutch Shell climbing by 3.9% and 3.4% respectively.

The Cac 40 in France climbed by 0.23%, while Germany’s Dax was up 0.24%.

The pound was flat against the dollar at 1.355. Against the euro, sterling was up 0.16% at 1.144.

In UK stocks, Vodafone rose after it announced an €18.4bn (£16.1bn) deal for a raft of Liberty Global assets across Europe.

The telecoms company said it had agreed to acquire operations in Germany, the Czech Republic, Hungary and Romania in a move that accelerates its “converged communications strategy”.

Shares closed the session up 1.15p at 208.7p.

Embattled doorstep lender Provident Financial said it is on the road to recovery after a torrid year of profit warnings and regulatory sanctions.

Provident, which sells high-cost credit through its Vanquis Bank, Moneybarn and consumer credit businesses, said its recovery plan was on track and it would meet its annual targets, boosting its shares by 8.35% or 53.6p to 695.6p.