London stocks are poised for a sharp rebound on Wednesday, after Donald Trump announced a two-week ceasefire with Iran and declared a “total and complete victory.”
Futures data points to the FTSE 100 opening 311.1 points higher, or 3.0%, at 10,659.89. The index had closed down 0.8% at 10,348.79 on Tuesday.
A move of this magnitude would return the FTSE 100 to levels last seen around a month ago, shortly after the conflict began.
In Asia, Japan’s Nikkei 225 rose more than 5.1% in early trading, while Hong Kong’s Hang Seng gained 3% and South Korea’s Kospi surged 7.3%.
The relief rally extended to major regional corporates, with Samsung Electronics climbing 4.5% and TSMC advancing 4.8%, as concerns over a global energy shock eased.
US markets also turned higher, with the S&P 500 recovering earlier losses to close in positive territory. Stocks extended gains in after-hours trading following confirmation of the ceasefire.
In commodities, Brent crude dropped more than 14% to around $94 per barrel—its lowest level since 11 March—reflecting improved expectations for oil supply stability.
Trump confirmed he would suspend military action for two weeks, contingent on Iran fully reopening the Strait of Hormuz. He described the agreement as a “double-sided ceasefire” and said negotiations toward a longer-term peace deal were progressing.
