May 26 (Reuters) - UK shares rose on Tuesday, with the FTSE 250 hitting a near three-month high, as investors returned from a long weekend and caught up on signs of progress in talks to end the U.S.-Iran conflict.
The blue-chip FTSE 100 rose 0.6% to 10,533.50 points by 1020 GMT, touching a one-month high, while the FTSE 250 climbed 0.9% to its highest since March 3, and on track for a fourth straight session of gains.
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U.S. and Iran signalled progress on a memorandum of understanding that could halt conflict between the two nations and restart shipping through the blockaded Strait of Hormuz.
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U.S. Secretary of State Marco Rubio, however, said that negotiating a deal with Iran could "take a few days" after the latest U.S. strikes in southern Iran.
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Major lenders HSBC, Barclays and Lloyds were among the top boosts to FTSE 100, while Rio Tinto and Glencore rose about 1% each, as metals prices firmed.
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Shares of oil majors BP and Shell dipped 1% and 0.5%, respectively, tracking weaker crude prices.
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The FTSE 100 index had ended a four-week losing streak on Friday after softer economic data weakened expectations of a Bank of England rate hike.
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However, the latest report showed British shop price inflation sped up in May on the back of disruption and higher energy costs caused by the war.
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Among individual stocks, Kingfisher rose nearly 4% after the home improvement retailer maintained its full-year profit outlook despite a drop in first-quarter underlying sales.
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Melrose Industries fell 4% after an overheating chemical tank at its GKN Garden Grove facility in California triggered an emergency response and evacuation orders over the weekend.
Reporting by Medha Singh in Bengaluru; Editing by Vijay Kishore
Source: Reuters