Good morning and welcome back to the City AM liveblog.
Markets sentiment is starting the new week on a positive note this morning after Pakistan said an official peace deal between the US and Iran would be signed this Friday in Switzerland.
Asian equities were sent soaring on the news after over a 100 days of uncertainty gripped global markets, with investors fearing inflationary impacts of the war.
Meanwhile, oil is moving lower, falling 3.8 per cent in early trade in Asia to around $84 a barrel. This comes after the US-Iran deal is expected to re-open the Strait of Hormuz.
Donald Trump posted on social media following the announcement of the deal that here authorises the “toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade.
“Ships of the world, start your engines. Let the oil flow!”
Fears of an oil shortage have fanned the flames of inflation across global economies. The US’ consumer price growth came in at 4.2 per cent – a three-year high – earlier this month led by a spike in energy prices.
The confirmation of a deal follows Iran’s chief negotiator Mohammad Bagher Ghalibaf casting doubt on peace hopes after stating that the latest strike on Lebanon from Israel showed the US was not fulfilling its commitments and either lacks the will or ability to do so.
Ghalibaf said there was “no point” in talking about continuing “down this path”.
But Trump has said strike on Beirut earlier on Sunday “should not have happened”.
We’ll be bringing you all the latest market updates and analysis.
Here’s a few of our top headlines from the weekend
- Starmer overrules Miliband on electric car sales targets as he looks to appease automotive industry
- Peace deal will be finalised Sunday, Trump says but Tehran casts doubt
- British forces intercept Russian shadow fleet in Channel
- Can football conquer the US? Why culture is key this World Cup
- Starmer agrees investment deal with Japan as EU deal questioned