Closing post
And finally… a roller-coaster day for markets has ended with London’s stock market at a one-month high!
The FTSE 100 share index has closed for the night up 71.5 points, or +0.7%, at 10,436 points, its highest closing point since the first week of March.
Stocks had fallen this morning, after hopes that Donald Trump would outline an end to the Iran war overnight were dashed, with Trump threatening to take Iran back to the ‘stone ages’.
But there’s been a recovery this afternoon, following reports that Iran is drafting a protocol with Oman to oversee traffic in the strait of Hormuz (see here for details).
Oil companies, and ‘defensive stocks’ such as utilities led the risers, as investors looked for safer places for their money.
AJ Bell head of financial analysis Danni Hewson says:
“The prospect of further escalation over the weekend has seen many investors rush to take defensive positions.
“In London, the focus has been on stuff people can’t do without even when their cost of living is under pressure.
European markets closed in the red – Germany’s DAX fell 0.8%, and France’s CAC lost 0.4%.
Stocks are still lower on Wall Street, where the Dow Jones industrial average is currently down 104 points, or 0.23%, at 46,460 points, recovering some of its earlier losses.
Anxiety over the Middle East crisis drove oil up today, with US crude oil surging over $110 a barrel.
Brent crude has dipped back from its highs, but is still up 6% tonight at $107.17 a barrel.
Our Middle East liveblog has all the latest developments:
Sputnik: Iran almost finalized draft of new navigation regime in strait of Hormuz
Iranian Deputy Foreign Minister Kazem Gharibabadi has apparently told Sputnik, the Russian government-owned news agency, that Iran has nearly completed its draft protocol, which would establish a new navigation regime in the strait of Hormuz.
Gharibabadi told Sputnik:
“The draft of this protocol is currently in the final stages of preparation. Once we have it ready, we will begin negotiations with Oman so that we can draft a joint protocol.”
Gharibabadi then explained that the protocol would mean that, in peacetime, all vessels that pass through the strait must have all the necessary agreements with the coastal states - Iran and Oman, and obtain the necessary permits and licenses in advance.
Updated
