FTSE 100 Live: Stocks to extend losses as investors weigh up US-Iran deal

Jun 16, 2026 - 02:02

Trump claimed a peace deal with Iran was signed. (Pic: Isabel Infantes/PA Wire)

Good morning and welcome back to the City AM liveblog.

Relief spread across global markets yesterday after the US and Iran were confirmed to have sealed a deal to stop the fighting in the Middle East and end the over 100 days of conflict.

Stock markets rallied and oil fell on the news, with Brent crude – the international benchmark for oil prices – hitting a three-month the low. But the FTSE 100 managed to miss out on this widespread euphoria as oil giants Shell and BP dragged the index into the red.

This morning, Brent crude is moving lower under $83 a barrel, meanwhile markets in Asia advanced cautiously as markets digested potential complications surrounding a US-Iran deal.

Neil Wilson, UK investor strategist at Saxo Markets, said: “The realisation will dawn on markets that unwinding the Gordian knot of US-Iran relations will take time – energy prices will decline slowly rather than suddenly”.

Donald Trump claimed last night the deal between the US and Iran is “all signed”. It’s understood a formal signing ceremony will take place in Geneva on Friday.

The US President also confirmed it did not include fighting between Israel and Lebanon, which has continued to derail peace talks.

He said the US wanted to see if they can “straight out” this conflict.

“It just seems to just never end,” Trump added.

Trump said he hopes the US and Iran would develop a good relationship but “if we don’t, we go back to where we started but I don’t think that’s going to be necessary”.

We’ll be bringing you the latest market reaction and analysis.