Source: Sharecast
The FTSE 100 was called to open around 3% higher. At 0715 BST, Brent crude was down 14.1% at $93.86 a barrel and West Texas Intermediate was 15.2% lower at $95.77.
Donald Trump announced on Tuesday that he had agreed "to suspend the bombing and attack of Iran for a period of two weeks" as long as Tehran agrees to reopen the Strait of Hormuz.
The US president said on Truth Social: "Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks.
"This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East. We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate."
Israel and Iran agreed to the ceasefire, although Israel noted that the ceasefire does not include Lebanon.
Trump said almost all of the various points of past contention have been agreed to between the US and Iran, but a two week period will allow the agreement to be finalised and consummated.
The announcement came less than two hours before the 20:00 ET deadline Trump had given Iran to reach a deal and reopen the Strait of Hormuz or face the "decimation" of its energy and transport infrastructure by the US.
Michael Brown, senior research strategist at Pepperstone, said: "A risk-on rally has gripped markets overnight, with stocks ripping and crude barrelling lower, as participants react to President Trump’s announcement of a two-week Middle East ceasefire.
"It took a while to arrive, coming just before midnight here in London, but yesterday did eventually bring about yet another ‘TACO Moment’.
"Yes, President Trump kicked the can down the road once more so far as his ‘deadline’ for strikes on Iranian power plants and bridges was concerned, with this in fact being the fourth time that said deadline has been extended. This time does look different, though, with the President noting that the two-week period is a ‘double-sided ceasefire’, during which the Strait of Hormuz will be reopened by the Iranians, a pivotal step in the normalisation of global commodity flows.
"Just as importantly, Trump, and the Iranians, have confirmed that various proposals have been exchanged which will now form the basis of negotiations towards a longer-lasting peace agreement, which will be ‘finalised and consummated’ over the coming fortnight."
Brown said the latter aspect helps to explain the significant risk-on market reaction seen overnight.
"Not only are participants pricing out the risk of near-term escalation, but they must also price in the increased likelihood that we do now see a durable, and long-lasting agreement formed to bring hostilities to an end."
In corporate news, energy giant Shell cut its forecast for integrated gas production, reflecting the impact of the Iran war on Qatari volumes.
However it added that trading results at its chemicals and products unit, which also includes refined oil, were expected to be "significantly higher" compared with the final quarter of 2025.
Renishaw said it has appointed the former finance lead of Dyson and Smiths Group as its new chief financial officer, ending a search to replace its long-running CFO that began last August.
John Shipsey has been appointed as CFO and executive director with effect from 13 April, bringing a “deep understanding of the industrials sector and its associated performance drivers”, according to interim chair David Grant.
Renishaw also announced that Grant has been named a permanent chair for up to two years while it continues to search for a long-term appointment.
Iconic bootmaker Dr Martens said it has appointed general managers across all of its major markets as part of a move to simplify its operating model and support its new consumer‑first strategy.
The company said it has shifted to a market‑level structure to bring teams closer to customers, alongside strengthening its global brand, technology and support functions.
Nick Duff has been named UK general manager, Nathalie Schneider will lead France, Kristin Staeren will oversee DACH and Giorgio Trevisan will head up Italy. All four appointments were internal promotions.