Trump halts attacks on Iran power plants until Friday

Trump had said on Saturday that he was giving Iran  48 hours – until shortly before midnight GMT on Monday – to open the strait of Hormuz, the vital waterway effectively being blocked by Iran which carries about a fifth of global oil and liquefied natural gas supplies.

Expectedly, markets have reversed earlier moves after Donald Trump said the US and Iran had had “very good and productive conversations regarding a complete and total resolutions of our hostilities in the Middle East.

Brent crude has fallen 13% to about $96 a barrel. The FTSE 100 index is now up 0.5% having fallen more than 2% earlier.

Gas prices have fallen from 159p a therm to about 139p. (Agencies reports)

The yield on 10-year UK government bonds, which had risen to 5.121% earlier, is now down to 4.89% – which is lower than at the start of the day.