Grey Havoc
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Iran and US agree to conditional two-week ceasefire and opening of Hormuz strait after Trump's threat - follow live
Pakistan says it will host talks between the two sides on Friday. Israel says it supports the ceasefire but it "does not include Lebanon".
Oil prices climbed to $111 per barrel on Tuesday, as investors grew increasingly uneasy over Donald Trump’s threat to bomb Iran if ceasefire deal is not reached.
Brent crude rose to about $111 a barrel, while West Texas Intermediate topped $115 – its highest level in a month.
The US president warned Iran that it must agree to a deal by 1am BST on Wednesday and reopen the Strait of Hormuz or be “decimated”.
Markets have been banking on a diplomatic breakthrough, but peace talks have so far made little headway.
“We are back on a Trump imposed countdown clock and there’s no way to predict with any confidence what will happen,” Kyle Rodda, senior markets analyst at Capital.com, said.
“The more intrepid traders might make a bet one way or the other. Others will look to hedge risk or stay out entirely. But there’s not much market participants can really do but wait and see.”
Equity markets were choppy in overnight trading, with US markets ending down but Asian stocks up. The FTSE 100 opened up 0.1pc on Tuesday morning while the FTSE 250 climbed 0.4pc.
8:39AM
Iran blocks two Qatari tankers in Strait of Hormuz
Two Qatari gas tankers that had been cleared to leave through the Strait of Hormuz were turned back by the Iranian Revolutionary Guard Corp, according to Reuters.
The liquefied natural gas vessels, the Al Daayen and Rasheeda, both performed u-turns in the strait after previously being told they could leave the Persian Gulf from Qatar’s Ras Laffan oil depot.
A source told Reuters the ships had been due to depart as part of talks with Iran via Pakistan, but the ships were ordered to halt.
“This was part of an arrangement negotiated as part of talks spearheaded by Pakistan last week,” a source said. The Al Daayen was signalling its destination as China on Monday.
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