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FTSE 100 Live: Stocks jump; oil dips below $100 as Trump says Iran deal close

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Donald Trump raising his fist in a confident gesture during a public appearance, symbolizing determination and leadership
Trump has insisted that peace talks are progressing. (Pic: AP/PA)

Good morning and welcome back to the Morning Wire liveblog.

Brent crude dipped below $100 at Wednesday lunchtime after Donald Trump has hailed “great progress” towards a “final agreement” with Iran, prompting a rally in the FTSE, Asian markets and Wall Street.

In a sudden reversal late last night, President Trump said he will pause “Project Freedom” to pursue a deal with Iran.

Trump had been poised to use the US navy to “guide” stranded ships through the Strait of Hormuz, but the President said on Tuesday night this effort will be paused for a “short period”.

Iran said on Wednesday that it could ensure safe passage through the Strait of Hormuz following the end to “threats from aggressors”.

The Iranian Revolutionary Guard did not specify what guarantees it would offer to ships passing through the trade route, but the intervention was enough to push Brent crude down by more than nine per cent to $99.79 per barrel.

FTSE 100 drinks maker Diageo was among the day’s biggest risers, as the Guinness owner jumped more than five per cent – to 1,551p – after World Cup hype helped the firm back to sales growth.

US markets jumped on Wednesday’s open, driven by double-digit climbs for chip maker AMD and glass maker Corning after it partnered with chip making giant Nvidia.

This comes as Thursday’s local elections are threatening to send shock waves through the market, as Keir Starmer’s position as Prime Minister teeters in the balance.

Gilt yields hit a 28-year high on Tuesday, as investors weighed up the prospect of a new Prime Minister, as Ed Miliband, Angela Rayner and Andy Burnham circle to Starmer’s left.

We’ll be bringing you the latest as it unfolds.

Here’s a few of our top stories on Wednesday