Financial markets experienced a volatile day on Wednesday, reacting to a series of major geopolitical and political events. Progress on a US-Iran peace deal pushed Brent crude oil prices below $80 per barrel, while UK Prime Minister Keir Starmer confirmed his resignation, triggering a leadership race. Meanwhile, news broke that Alan Greenspan, former Federal Reserve chair, had died at age 100.
US-Iran Peace Deal Progress Lowers Oil Prices
Officials from the United States and Iran have agreed to a roadmap towards a final agreement within 60 days, according to reports. The breakthrough helped bring down Brent crude oil prices below $80 per barrel, providing relief to global markets. Asian stocks also lifted on the news, though the conflict continues to cast a long shadow over the global economy, as reported earlier.
Starmer Resigns as UK Prime Minister
Keir Starmer confirmed he would be resigning as UK prime minister, opening the floor to a leadership race that is expected to bring a new face into Number 10 Downing Street by September. In his resignation speech, Starmer highlighted six key takeaways, according to a separate report. Financial markets took the news in stride, having broadly priced in his departure. The pound pared its losses to trade flat on the day, alongside the domestically focused FTSE 250. The FTSE 100 bounced into positive territory, trading 0.5% higher. UK gilt prices also benefited, with yields dropping in response to the resignation and the prospect of easing international geopolitical tensions and inflation.
Alan Greenspan Dies at 100
Alan Greenspan, the longtime former head of the US Federal Reserve, died at age 100. Greenspan served as Fed chair from 1987 to 2006, overseeing periods of economic expansion and crisis. His death was confirmed by his family, according to reports.
Other Market Stories
In other news, a US firm went public with a £4.7bn proposal to buy easyJet after earlier bids were rejected. A new analysis detailed how Brexit has hit consumers' wallets at the supermarket and on holiday. Babcock International reported that Brexit and Covid beset the Royal Navy contract, leading to plunging profits.
