The FTSE 100 surged to a new intra-day peak of 10,481, closing at a record 10,402.34, despite heavy losses in New York and investor concerns over stocks sensitive to artificial intelligence. This marks a significant milestone, as the index only crossed the 10,000 threshold in January and has now gained nearly 5 percent for the year. The FTSE 250 also edged higher, moving closer to its own record set in 2021.

London's stock market rally was supported by strong performances from energy giants and pharmaceutical firms, with Shell and BP benefiting from rising oil prices amid escalating tensions between the United States and Iran. Meanwhile, software stocks continued to slide following the launch of a new artificial intelligence tool, but gains in other sectors, including insurance and betting, helped offset losses.

Analysts attribute the FTSE 100's resilience to its defensive qualities, which have attracted investors seeking stability in an uncertain global environment. Despite volatility in commodities such as oil, gold, and bitcoin, risk sentiment appears to be favoring London, with several blue-chip stocks reaching multi-year highs.