Stocks poised for gains as Trump signals Iran deal, oil flow

Global markets experienced relief as the US and Iran confirmed a deal to end the conflict in the Middle East. Brent crude, the international benchmark for oil prices, hit a three-month low, falling below $83 a barrel. However, the FTSE 100 index saw only cautious gains, with oil giants Shell and BP weighing on the index.

President Donald Trump announced that a deal between the US and Iran was "all signed," with a formal signing ceremony anticipated in Geneva on Friday. He also confirmed that the agreement does not encompass the ongoing fighting between Israel and Lebanon, which has previously hindered peace talks. Trump expressed hope for a positive US-Iran relationship but acknowledged the possibility of reverting to the initial state if necessary.

Investors are weighing potential complications surrounding the US-Iran deal, with energy prices expected to decline gradually rather than suddenly, according to Neil Wilson, UK investor strategist at Saxo Markets.