Story
UK Stocks Pare Losses After Trump Declares Iran Deal 'Over'
Summary
The FTSE 100 and other European markets recovered from earlier sharp declines on Wednesday following volatile trading. The market moves were spurred by comments from U.S. President Donald Trump, who stated that a ceasefire deal with Iran was "over" amid escalating military actions in the Gulf.
British and European stocks pared sharp losses on Wednesday after comments from U.S. President Donald Trump regarding Iran created market volatility. As of 08:42 ET, the FTSE 100 was down approximately 1%, while Germany's DAX and France's CAC 40 fell by 1.8% and 1.7% respectively, both recovering from earlier declines that had exceeded 2%.
Speaking from the NATO summit in Ankara, Turkey, President Trump told reporters the U.S.-Iran memorandum of understanding was "over" and that he had no desire to negotiate with Tehran's leadership. He later appeared to soften his stance, saying negotiators could continue talks "if they want," but added, "I don’t see it." The President also alleged that Iran was actively seeking to assassinate him.
The remarks followed an escalation in military activity, where U.S. forces struck over 80 Iranian targets in response to attacks on commercial vessels in the Strait of Hormuz. Iran’s IRGC reported launching its own missile and drone operations and warned that any location facilitating U.S. strikes would be considered a "legitimate target."
AdThe geopolitical tensions significantly impacted commodity markets. Brent crude oil rose 4.3% to $77.37 a barrel, while WTI crude gained 4.2% to $73.38, both down from their session highs. In contrast, gold futures declined by 1.7% to $4,085.30 as risk sentiment shifted.