London stocks climb as oil prices fall on hopes of US-Iran peace talks and tech shares bounce back

The FTSE 100 closed up 0.3% at 10,761.33, while the mid-cap FTSE 250 surged 1.4% as falling oil prices and a tech sector rebound lifted markets on both sides of the Atlantic. The sell-off was driven by investor anxiety over whether vast AI infrastructure spending will ever deliver adequate returns, with Tom Stevenson of Fidelity International warning that yields at or above 5% make the case "harder to make."

AI firm Anthropic posted quarterly revenue of $17bn, a rise of more than 1,100%, lifting sentiment ahead of its Wall Street float later this month.

Apple's earnings results and US midterm elections are due this week, with Friday's nonfarm payrolls report also set to give markets further direction.

Oil sank sharply on renewed hopes for diplomatic progress between the US and Iran, with Asian markets mixed overnight as South Korea's Kospi rose 2.2% but Japan's Nikkei slipped 0.3%.