Susannah Streeter, chief investment strategist at Wealth Club, said: “A dam of tension has eased with relief flooding into financial markets, amid hopes that hostilities will cease in the Middle East, with the Trump administration making conciliatory moves.
“The Footsie 100 has rallied higher, with optimism replacing pessimism, given the ceasefire looks more likely to hold.
“Trump’s announcement that Operation Epic Fury has been concluded, has triggered a wave of buying given there’s less of a chance of the situation escalating once more.
“Relief is starting to seep into the bond markets, with UK gilt yields easing off amid hopes that inflation might not head quite as high if a longer-term resolution can be negotiated.
“Brent crude has been on the descent, but it’s still trading around $107 dollars a barrel indicating that there’s still scepticism around, and concern about how to get so many vital energy shipments moving again with the Strait of Hormuz still effectively blocked.
“There’s still a big diplomatic impasse to break through, and so for now, the energy crunch is still a harsh reality to navigate.”
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