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Introduction: Oil prices decline as US and Iran suspend strikes

Good morning and welcome to our continuous coverage of business, financial markets and the global economy.

Oil prices dropped more than 5 percent this morning after the US halted strikes on Iran for a second straight night, with military advisers urging Donald Trump to end the bombing campaign.

Brent crude, the global benchmark, fell 5.3 percent to 91.68 dollars a barrel following a peak above 100 dollars last week.

Trump is weighing diplomatic and military paths in the Iran conflict, while Israeli leader Benjamin Netanyahu plans a White House visit on Tuesday.

Iran announced on Sunday it would halt retaliatory actions against US allies in the area.

Jim Reid of Deutsche Bank noted the pause is not a formal ceasefire yet both sides frame it as a chance for talks.

US officials including UN ambassador Mike Waltz emphasized all military choices stay available and President Trump is simply allowing more room for negotiations. Reports from the New York Times and Axios indicate internal debate on the value and expense of additional strikes, with some military voices claiming main goals are mostly met. Markets view the break positively for now though conditions stay very changeable.
The chief market concern centers on energy and shipping. Traffic via Hormuz faces major disruption while fighting has spread to the Red Sea where Iran-backed Houthi forces launched missile and drone strikes on Saudi energy sites near Jizan and Yanbu over the weekend leading to Saudi counter strikes. This creates risk of simultaneous blocks on Gulf and Red Sea routes. The pause from main players is welcome but remains delicate especially with ongoing side conflicts.

Elsewhere this morning AstraZeneca posted stronger than forecast profits for its second quarter thanks to robust cancer treatment sales growth.

Earnings for the three months to June rose 18 percent to 2.63 dollars (1.97 pounds) per share while total revenue increased 5 percent to 15.38 billion dollars at constant currency.

The agenda

7am BST: AstraZeneca half-year results
1.30pm BST: US durable goods orders

Key events

18m ago European gas prices fall sharply
1h ago European stock market rises as US-Iran pause lowers oil
1h ago Oil slips under 90 dollars Eurozone and UK bond yields ease
2h ago DCC Energy accepts 5.75 billion pound takeover
2h ago Shein reports 99 million dollar loss before IPO
2h ago Introduction: Oil prices decline as US and Iran suspend strikes

European gas prices fall sharply

European wholesale gas prices also declined this morning as the pause in US and Iranian strikes over the weekend raises hopes that Hormuz traffic may resume.

The European benchmark Dutch front-month contract dropped 6.8 percent to 59.22 euros per megawatt hour. The British month ahead contract fell 6.8 percent to 143.93 pence per therm.

Energy firms BP and Shell rank among the weakest FTSE 100 performers this morning with shares down 3.8 percent and 2 percent respectively due to softer oil prices. The energy sector overall declined about 2.6 percent.

JD Sports leads gainers with shares in the fashion retailer up 3.6 percent. Vodafone follows with shares rising 3 percent after a positive quarterly update.

European stock market rises as US-Iran pause lowers oil

European equities advanced this morning as investors welcomed the sharp oil price drop after the US paused its nearly two-week strike sequence against Iran.

The Stoxx Europe 600 index tracking major continental firms rose 0.9 percent. The UK FTSE 100 gained 0.5 percent while the French Cac 40 climbed 1.1 percent and the German Dax advanced 1.5 percent.

Oil slips under 90 dollars Eurozone and UK bond yields ease

The oil price fell below 90 dollars a barrel as investors assessed the pause in US-Iran fire.

Brent crude the global benchmark declined 7.1 percent to 89.94 dollars a barrel. It exceeded 100 dollars last week amid consecutive US strikes on Iran and threats of a naval blockade of Saudi ports by Yemen Houthi forces.

Prices eased today after the US halted strikes on Iran for a second night and military advisers urged Donald Trump to end the campaign.

In Europe bond yields declined with lower oil prices. Eurozone 10-year yields fell about 3 basis points while the UK 10-year gilt yield dropped about 5 basis points to 4.98 percent.

The UK gilt yield decline followed Andy Burnham weekend comments that Britain must reduce its welfare bill.

Susannah Streeter chief investment strategist at Wealth Club said the lower gilt yield reduced some pressure on the new government.

This comes as welcome news with attention now on spending challenges for the new government including prime minister warnings that social care requires urgent reform to support the NHS alongside acceptance that benefits spending must decrease. Detail remains limited on how ministers will tackle large welfare costs so government debt investors are likely to stay cautious amid much discussion but little action on cutting spending.

On the corporate side this morning Vodafone reported a 9.7 percent revenue increase in its first quarter to 10.3 billion euros.

Service revenue rose 5 percent in the quarter to June beating investor forecasts of a 4.6 percent gain. Management now projects adjusted earnings between 13 billion and 13.3 billion euros for the full year to March.

In recent years Vodafone has restructured by selling Italian and Spanish operations plus its 50 percent Dutch joint venture stake and merging with Three to form the UK largest mobile operator.

Earlier this month French telecoms billionaire Xavier Niel became Vodafone largest shareholder after acquiring a 16 percent stake for 4.4 billion pounds.

The firm has also faced claims first reported in the Guardian that it unjustly enriched itself by cutting commissions to franchisees operating its high street stores.

DCC Energy accepts 5.75 billion pound takeover

Another firm has been acquired from London stock exchange this morning as DCC Energy agreed a 5.75 billion pound takeover by private equity investors KKR and Energy Capital Partners.

DCC Energy FTSE 100 shareholders will receive 65.25 pounds per share in cash a proposed final dividend of 147.22 pence per share and a possible extra payment of up to 1.25 pounds per share if DCC sells its technology unit for at least 800 million dollars.

The deal offers a 24 percent premium to DCC share price in late April before the consortium first bid.

DCC chair Mark Breuer said in a statement:

While the DCC Energy Board stays confident in the energy strategy and 2030 Ambition set out in 2022 the Board views the Consortium offer as a strong chance for shareholders to realize cash value at an attractive premium to historical trading levels.
We believe the Consortium will serve as effective stewards of DCC Energy 50-year legacy and back the business in its next growth phase.

This marks the latest in a series of London market takeovers with Mitie Intertek easyJet Beazley and Schroders all agreeing deals this year.

Shein reports 99 million dollar loss ahead of IPO

Chinese fast fashion leader Shein posted a 99 million dollar (74.1 million pound) net loss in its first quarter after the US ended an import duty exemption on small packages which slowed sales.

The results formed part of pre-IPO filings as the company prepares to list on Hong Kong stock exchange.

They showed a 99 million dollar loss in the first quarter of 2026 compared with 395 million dollars net income a year earlier.

The US ended the tariff exemption for small packages in May. Shein stated in its filing it is exploring many options including raising US prices to offset part of the added costs.

The European Union also imposed a 3 euro fee on low-value e-commerce imports this month to protect European businesses from what the union terms unfair competition from China.

Shein valuation has fallen sharply in recent years as the pandemic online shopping surge faded. The company now seeks a valuation of 40 billion to 50 billion dollars compared with earlier 2022 reports of a possible 100 billion dollar valuation.

Introduction: Oil prices decline as US and Iran suspend strikes

Good morning and welcome to our continuous coverage of business financial markets and the global economy.

Oil prices dropped more than 5 percent this morning after the US halted strikes on Iran for a second straight night with military advisers urging Donald Trump to end the bombing campaign.

Brent crude the global benchmark fell 5.3 percent to 91.68 dollars a barrel after exceeding 100 dollars last week.

Trump is weighing diplomatic and military paths in the Iran conflict while Israeli leader Benjamin Netanyahu plans a White House visit on Tuesday.

Iran announced on Sunday it would halt retaliatory actions against US allies in the area.

Jim Reid of Deutsche Bank noted the pause is not a formal ceasefire yet both sides frame it as a chance for talks.

US officials including UN ambassador Mike Waltz emphasized all military choices stay available and President Trump is simply allowing more room for negotiations. Reports from the New York Times and Axios indicate internal debate on the value and expense of additional strikes with some military voices claiming main goals are mostly met. Markets view the break positively for now though conditions stay very changeable.
The chief market concern centers on energy and shipping. Traffic via Hormuz faces major disruption while fighting has spread to the Red Sea where Iran-backed Houthi forces launched missile and drone strikes on Saudi energy sites near Jizan and Yanbu over the weekend leading to Saudi counter strikes. This creates risk of simultaneous blocks on Gulf and Red Sea routes. The pause from main players is welcome but remains delicate especially with ongoing side conflicts.

Elsewhere this morning AstraZeneca posted stronger than forecast profits for its second quarter thanks to robust cancer treatment sales growth.

Earnings for the three months to June rose 18 percent to 2.63 dollars (1.97 pounds) per share while total revenue increased 5 percent to 15.38 billion dollars at constant currency.

The agenda

7am BST: AstraZeneca half-year results
1.30pm BST: US durable goods orders