Prime Minister Sir Keir Starmer is traveling to the Gulf today demanding international partners transform a fragile two-week Iran-US ceasefire into permanent peace as markets surged following President Donald Trump’s dramatic reversal from apocalyptic threats to provisional détente.
The FTSE 100 jumped 268.28 points—2.59 per cent—to 10,617.07 whilst crude oil plunged approximately 14 per cent in early trading after Mr Trump announced less than two hours before his deadline that Tehran had submitted a “workable” ten-point peace plan enabling Strait of Hormuz reopening.
“Together with our partners we must do all we can to support and sustain this ceasefire, turn it into a lasting agreement and re-open the Strait of Hormuz,” Sir Keir stated, with Downing Street confirming he would emphasise Britain’s de-escalation commitment whilst visiting military personnel and discussing “practical efforts” to restore navigation freedom.
However, shipping industry experts poured cold water on expectations for rapid Gulf trade resumption despite the breakthrough. Lars Jensen of Sea Intelligence Consulting told BBC Radio 4’s Today programme vessels would likely exit the waterway whilst only a “trickle” enters.
“Shipping lines will be hesitant about trusting the longevity of this ceasefire at this point and therefore get vessels out so they can use them, but not risk putting new vessels into the Gulf that might then be trapped if the ceasefire breaks down,” Mr Jensen explained, warning companies feared paying Iranian tolls could breach US sanctions.
Mr Trump’s Truth Social announcement followed Pakistan-brokered negotiations and last-minute Chinese intervention urging Tehran to show flexibility over economic fallout, according to three Iranian officials who spoke to The New York Times.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” the President declared after discussions with Pakistani Prime Minister Shehbaz Sharif, reversing his earlier warning that “a whole civilisation will die” unless demands were met.
Israel similarly agreed halting Iranian attacks for two weeks once the Strait reopens, a senior White House official told Axios.
The provisional ceasefire represents “a double-sided” arrangement, Mr Trump stated, claiming Washington had “already met and exceeded all military objectives” whilst progressing toward “definitive agreement concerning long-term peace.”
Policing Minister Sarah Jones told Times Radio Britain wanted to help “bring back some normality” following weeks of conflict that closed the strategically vital waterway and drove UK energy costs higher.
Shell reduced first-quarter 2026 gas production outlook after its PearlGTL Qatar site stopped production during recent attacks, though the company expects its chemical and products trading to be “significantly higher” following energy price surges.
