Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com -- British stocks extended gains in Wednesday afternoon trading, though lagged European peers, as global markets rallied after the U.S. and Iran agreed to a two-week ceasefire just ahead of a deadline set by President Donald Trump.
The pound strengthened, while European equities moved higher. As of 13:08 GMT, the blue-chip FTSE 100 rose 3.1%, while the British GBP/USD gained 1.4% against the dollar to 1.3476. Germany’s DAX advanced rose 5.3%, and France’s CAC 40 climbed about 5%.
"...I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East," Trump posted on Truth Social.
UK round up
UK Prime Minister Keir Starmer is traveling to the Middle East on Wednesday to meet with allies and support ceasefire efforts following an agreement reached overnight.
Starmer welcomed the ceasefire agreement, stating it will bring a moment of relief to the region and the world. During his visit, Starmer will hold discussions focused on ensuring the reopening of the Strait of Hormuz remains permanent. The strait is a critical waterway for global oil shipments.
Shell PLC (AS:SHEL) said Wednesday that first-quarter 2026 indicative refining margins rose to $17 per barrel, but warned that unprecedented volatility in commodity prices is expected to drive a significant working capital outflow. Shares fell more than 7%, making the company one of the FTSE 100’s top losers.
The company said working capital movements are expected at between negative $15 billion and negative $10 billion in the quarter, reflecting the impact of price swings on inventory and receivables.
British housebuilder shares surged as much as 13% Wednesday after Halifax data showed UK house prices held up despite ongoing uncertainty from the conflict in the Middle East, though prices did slip below the £300,000 barrier for the first time this year.
Vistry Group PLC (LON:VTYV) led gains among the sector, rising 12.8%, while Crest Nicholson Holdings plc (LON:CRST) climbed 11.4%. Persimmon PLC (LON:PSN) added 9% and Barratt Redrow PLC (LON:BTRW) gained 8.7%.
Halifax said average UK house prices fell 0.5% in March to £299,677, but remained 0.8% higher than a year earlier.
Shares in Gamma Communications PLC (LON:GAMA) jumped more than 13% after the company confirmed it is in early-stage discussions with potential suitors over a possible takeover.
The British telecoms provider said Tuesday it was in preliminary talks with a number of interested parties to assess whether a proposal could deliver greater value to shareholders than remaining independent.
UK mining stocks surged after the United States and Iran agreed a two-week ceasefire, easing energy supply fears and lifting metals prices broadly.
On London’s FTSE 100, copper miner Antofagasta PLC (LON:ANTO) rose 12.4% and Anglo American PLC (LON:AAL) rose by 10.1%, with precious metals specialist Fresnillo PLC (LON:FRES) up 10.6%. Endeavour Mining Corp (TSX:EDV) added 6.7% and Rio Tinto PLC (LON:RIO) rose 4.7%, while Glencore PLC (LON:GLEN) was little changed.
On the FTSE Mid-Cap 250, RHI Magnesita NV (VIE:RHIM), Hochschild Mining PLC (LON:HOCM), Pan African Resources PLC (LON:PAFR) and Atalaya Mining Ltd (LON:ATYM) all climbed more than 7%.
European airline shares surged between 8.9% and 13.6% after a sharp drop in oil prices followed a geopolitical de-escalation between the United States and Iran.
Stocks including Ryanair Holdings PLC (LON:0RYA), International Consolidated Airlines Group S.A. (LON:ICAG), Deutsche Lufthansa AG (ETR:LHAG) and Air France KLM SA (EPA:AIRF) advanced as crude prices tumbled after U.S. President Donald Trump agreed to suspend planned military strikes against Iran for two weeks.
Close Brothers Group plc (F:CBRO) shares jumped over 17% after the lender said it estimates the cost of the Financial Conduct Authority’s motor finance consumer redress scheme at around £320 million, broadly in line with its existing provision. The estimate is based on the FCA’s Policy Statement PS26/3, published Monday.
UK construction output declined in March, marking the 15th consecutive month of contraction, according to data released Wednesday by S&P Global. The S&P Global UK Construction Purchasing Managers’ Index rose to 45.6 in March from 44.5 in February, but remained below the 50.0 threshold that separates growth from contraction.
Renishaw PLC (LON:RSW) annoucned the appointment of John Shipsey as Chief Financial Officer and Executive Director, effective April 13, 2026.
Shipsey brings extensive board and executive leadership experience to the manufacturing technologies provider. He previously served as CFO at Dyson Limited for 12 years, Smiths Group plc for five years, and Featurespace Limited for two years.