Good morning and welcome back to the City AM liveblog.
Markets are in line for a major boom this morning after Donald Trump confirmed a two-week ceasefire with Iran shortly ahead of his latest bomb threat deadline.
Trump announced the two-week postponement by stating the US and Iran were “very far along” with a “definitive” peace agreement.
The biggest reprieve came from the Strait of Hormuz, where much of the market tensions have centred around.
The US said it accepted the ceasefire on the condition that traffic would once again freely flow through the strait. Meanwhile, Iran has insisted it wants to have control over maritime traffic in the narrow waterway.
White House Press Secretary Karoline Leavitt hailed the agreement as a “victory” for the US, and added that Trump “got the Strait of Hormuz reopened”.
Oil reacted well to the news, falling below the $100 mark. In early trade in Asia the price of Brent crude had already slipped around 13 per cent to $95.
Now attention turns to the negotiation period, which is set to carry out throughout the next two weeks whilst strikes are suspended.
Israel, which has led strike efforts alongside the US on Iran, said it supports the ceasefire but made clear it does not include Lebanon, throwing some uncertainty into the mix.
Strikes have also continued to be reported from Israel to Iran on early Wednesday morning as well as other reports of missile attacks in Jerusalem, Bahrain, and in the UAE.
We’ll be bringing you the latest as this unfolds.
Here’s a few of our top headlines this morning:
- Digital push at Sun owner News UK lifts revenue, but profits lag
- Jet fuel crisis sparks rush for travel insurance
- Leon founder: Labour ‘killing’ restaurant industry
- Blackstone swoops on Senior in £1.3bn aerospace supply chain play
- Abramovich foundation trustee has links to Starmer advisor Powell
- Businesses brace for costs as new workers’ rights kick in
- Wireless Festival cancelled after Home Office blocks Kanye West
