The FTSE 100 closed up 0.7% on Monday, driven by sharp gains in UK banking stocks following a favorable Supreme Court ruling on the motor finance probe. Lloyds Banking Group surged over 8%, hitting its highest level since 2015, while NatWest rose more than 2% and Barclays gained 1.5%. HSBC and Standard Chartered also climbed. The ruling overturned a lower court’s decision, easing fears of massive compensation payouts tied to motor finance misselling. The Financial Conduct Authority now estimates potential redress at 9 billion GBP - far below earlier market concerns of up to 30 billion GBP. Lloyds, the largest player in UK motor finance, was upgraded by RBC, with analysts calling the ruling a “clearing event” that removes a major overhang on the stock. BP also rose nearly 2% ahead of its earnings report, as investors look for updates on its pivot back toward traditional energy sources.