Global equity markets staged a broad rally on Monday after the United States and Iran agreed to a mutual understanding that effectively ends their conflict.
The diplomatic breakthrough, confirmed by Pakistan acting as an intermediary, has significantly lowered the immediate risk of a prolonged Middle East energy crisis.
Wall Street indices raced higher as investors digested the news, while the prospect of a reopened Strait of Hormuz sent oil prices sharply lower.
The energy sector provided the clearest signal of the market's reaction.
Brent crude and WTI prices slumped as the threat of supply disruption from the Strait of Hormuz receded.
The drop in energy costs dragged on London-listed energy giants, with BP and Shell shares missing out on the broader equity rally.