15th Jun 2026 06:57
(Alliance News) - Socks in London are set to open higher on Monday after the US and Iran announced a framework peace agreement and plans to reopen the Strait of Hormuz, fuelling a rally in global equities and sending oil prices lower.
IG says futures indicate the FTSE 100 to open 90.8 points higher, 0.9%, at 10,562.52 on Monday. The index of London large-caps closed 1.6% higher at 10,471.72 on Friday.
The UK and Japan on Sunday sealed a sweeping economic and technological partnership, expected to generate over GBP18 billion in investment, during a visit to London by Japanese Prime Minister Sanae Takaichi.
British Prime Minister Keir Starmer and Takaichi held talks at his Downing Street office, ahead of them attending a G7 summit in France which begins on Monday.
In total, more than 10 trade agreements were signed, including a GBP9-billion offshore wind farm project, as Starmer hailed as "a new era of cooperation between our two countries".
US President Donald Trump said a peace deal with Iran is "now complete", raising hopes that the conflict which has rattled global markets since late February may be drawing to a close.
The Strait of Hormuz is set to reopen only after the formal signing of the Iran agreement on Friday, Trump said on his Truth Social platform.
"With the opening of the strait upon the signing of the deal on Friday, for purposes of mine removal, oil will flow on both ends again for the region, and the world!" Trump wrote.
Iran's Tasnim news agency also reported, citing unnamed sources, that the Strait of Hormuz would reopen after the signing of a framework agreement on Friday.
Pakistan's prime minister earlier announced that the US and Iran had agreed to a "peace deal" that immediately halts all military operations, including in Lebanon, with a signing ceremony due to take place in Geneva on Friday.
The prospect of peace had an immediate impact on energy markets. Brent oil was trading at USD83.48 a barrel early Monday, lower than USD87.00 late Friday and well below the peaks of USD120 seen during the conflict.
Meanwhile, Mehr news agency reported that the US will release USD12 billion in frozen Iranian assets before the start of negotiations, citing a 14-point memorandum of understanding between the two countries.
The document reportedly stipulates the release of USD24 billion in frozen Iranian assets during a 60-day negotiation period, with half the amount made available before talks begin. The details have not been officially confirmed.
The UK, France, Germany and Italy also signalled support for the agreement, saying they are prepared to lift sanctions imposed on Iran, according to a joint statement welcoming the deal reached between Washington and Tehran.
Sterling was quoted at USD1.3455 early Monday, higher than USD1.3422 at the London equities close on Friday. Against the euro, sterling fell to EUR1.1577 from EUR1.1587 a day prior.
The euro traded at USD1.1616 early Monday, higher than USD1.1583 late Friday. Against the yen, the dollar was quoted at JPY160.02 versus JPY160.18.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.3%.
In corporate news, SpaceX shares surged almost 20% on Friday in what was the largest stock market debut in history, lifting the company's valuation above USD2 trillion and making Elon Musk the world's first trillionaire.
The shares closed at USD160.95, valuing SpaceX at around USD2.1 trillion and making it the sixth-largest listed company in the world. More than USD80 billion worth of shares changed hands during the session.
SpaceX raised USD75 billion in a record-breaking initial public offering on Thursday amid intense demand for artificial intelligence-linked investments. The total could rise to USD86 billion if underwriters exercise an option to sell additional shares.
In Asia on Monday, equities rallied after the announcement of a US-Iran peace agreement, with the Nikkei 225 in Tokyo surging 4.9% to a record high. In China, the Shanghai Composite rose 1.1%, while the Hang Seng index in Hong Kong gained 0.6%. The S&P/ASX 200 in Sydney advanced 1.4%.
Gold was quoted at USD4,320.00 an ounce early Monday, higher than USD4,219.28 on Friday.
Back in the UK, reports suggest the government is set to water down its electric vehicle sales targets after industry pressure over potential job losses.
According to The Sunday Times, the requirement under the zero-emission vehicle mandate for 80% of new car sales to be fully electric by 2030 will be cut to 50%.
Prime Minister Keir Starmer is understood to have overruled Energy Secretary Ed Miliband following pressure from industry groups, Unite union and Business Secretary Peter Kyle.
Separately, UK house prices recorded their biggest June decline in 14 years, according to property portal Rightmove.
The average asking price of a property coming to market fell 0.6% this month to GBP376,191, marking the largest June drop since 2012.
In Monday's corporate calendar, Peel Hunt reports full-year results, while Team Internet Group publishes full-year figures.
In the economic calendar on Monday, Germany releases wholesale prices data, while Switzerland reports producer and import prices.
Elsewhere, the eurozone publishes trade balance and industrial production figures, Canada releases manufacturing sales data, and in the US investors will monitor the New York Empire State manufacturing index and industrial production.
By Eva Castanedo, Alliance News reporter
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