The FTSE 100 rose on Monday after Donald Trump hailed a peace deal with Iran. The blue-chip London index was up around 80 points shortly after 8am, or some 0.75%. Markets in Europe picked up after months of economic turmoil triggered by America and Israel launching air strikes on Iran.
The conflict escalated into Tehran closing down the Strait of Hormuz by targeting tankers, triggering a record oil shock for the global economy. After news of a peace deal, oil prices dropped, raising hopes that inflation which has hit the UK and other economies may now ease.
Confirming the completion of an agreement with Iran, Trump declared as he celebrated his 80th birthday “let the oil flow”. He signalled the Strait of Hormuz would reopen “for purposes of mine removal”. Ending Iran’s stranglehold on the critical waterway, which has disrupted global oil and gas supplies and driven up fuel and food prices, had been a key demand in negotiations.
The UK and France have led plans for a defensive mission to protect shipping in the channel once hostilities end, including the deployment of autonomous mine-hunting equipment. However, it leaves outstanding Tehran’s nuclear plans, which it insists are peaceful but the US and Israel fear could be used to build a weapon due to its stockpile of highly enriched uranium.
Trump was due to fly to a meeting of heads from the G7 group of leading democracies in Evian, France, where the settlement reached with Iran to end the four-month-long war was likely to dominate, with full details still to emerge. Sir Keir Starmer and Trump have clashed over the war after the Prime Minister refused to allow US planes to use UK bases for offensive air strikes on Iran.
The US president announced the agreement with Tehran just hours before the start of a mixed martial arts event Sunday’s Ultimate Fighting Championship (UFC) event at the White House. The build-up to the cage-fighting event to mark America’s 250th anniversary of independence, saw the president and UFC chief Dana White walk together from the Oval Office to the White House balcony overlooking the giant open-sided arena, nicknamed “The Claw”, on the South Lawn.
The national anthem was then played as a formation of fighter jets streaked overhead, sparking a cheer from the crowd and chants of “USA, USA”. Trump then took his seat close to the signature octagon cage, where the seven fights were to be held. Among the 4,000 guests in the custom-built venue was British heavyweight boxing star, Tyson Fury, wearing a Donald Trump for prime minister baseball hat. Meta boss Mark Zuckerberg was also spotted speaking to the president during a break in the action. Others with cage-side seats were FBI director Kash Patel, acting US attorney general Todd Blanche and speaker of the House of Representatives Mike Johnson.
