British stocks pushed higher on Monday as a third consecutive night without U.S. strikes on Iran reduced fears of a broader Middle East conflict.
The FTSE 100 (^FTSE) climbed 0.42% as of 07:35 GMT, while Germany’s DAX (^GDAXI) outperformed European peers with a 1.3% gain and France’s CAC 40 added 0.72%.
Sterling strengthened against the dollar, with GBP/USD rising 0.16% to trade at 1.3345 during the morning session.
The U.S. military pause came after top commanders advised President Trump to halt the bombing campaign, with diplomatic talks continuing to prevent a return to all-out war.
Adm. Bradley Cooper, the top U.S. military commander in the region, told Trump the campaign had “reached the limits of its effectiveness,” having nearly exhausted the target list developed for Iran.
Iran’s army spokesperson Mohammad Akraminia said Tehran would also pause what it called “retaliatory” attacks on U.S. allies across the region.
“These attacks continued until two nights ago, but over the past two nights the Americans have stopped their attacks,” said Iran’s army spokesman Mohammad Akraminia, adding: “Since… our strategy has essentially been retaliatory, we have also halted our retaliatory operations.”
UN ambassador Mike Waltz tempered expectations of a lasting ceasefire when asked on NBC’s Meet the Press whether Trump was ruling out further strikes, saying “I wouldn’t go that far at all. The president is keeping all options on the table.”
Iranian state broadcaster IRIB reported that six ships attempting to pass through what it described as an “illegal and unsafe” route in the southern Strait of Hormuz were intercepted early Monday, with one vessel suffering an accident and the rest turned back under what IRIB called “decisive Iranian management.”
IRIB said the vessels had been “provoked by the US military,” a characterisation that has not been independently verified by outside sources.
Active Iran-Oman negotiations aimed at reopening the Strait of Hormuz continued alongside the military pause, further supporting market sentiment across European trading floors.
Israeli Prime Minister Benjamin Netanyahu departed for Washington ahead of a scheduled meeting with Trump on Tuesday, marking their seventh meeting since January 2025.
Oil prices fell sharply in response to the diplomatic de-escalation, with WTI crude dropping 5.6% to $84.32 a barrel and Brent crude sliding 5.2% to $86.94.
Gold continued to attract safe-haven demand despite the easing tensions, with futures rising 0.84% to $4,104.95 and spot gold gaining 1.2% to $4,102.82.
AstraZeneca (AZN) beat second-quarter profit forecasts and reaffirmed its 2026 outlook, citing strong demand across its cancer and cardiovascular drug portfolios.
Vodafone (VOD) raised its full-year guidance after a strong start to the year and the positive impact of its Safaricom transaction on overall group performance.
Cranswick reported higher first-quarter revenue driven by robust volume growth and strong consumer demand for protein-rich foods, while maintaining its full-year outlook.