Oil drops amid US‑Iran talks; pound steadies as Starmer resigns

Oil prices fell on Monday as optimism grew around US‑Iran talks, following mediators’ announcement of a roadmap toward a final agreement, while major stock markets traded mixed.

The British pound and the FTSE 100 firmed, and the UK’s benchmark 10‑year bond dipped, after Prime Minister Keir Starmer, whose tenure had been beset with challenges, announced his resignation—an outcome widely anticipated and suggesting an orderly transition to a new leader.

Globally, attention remained focused on the Middle East and the potential reopening of the Strait of Hormuz for tanker and cargo traffic.

Iran’s senior envoys exited Swiss talks on Monday following an extended negotiation session with the United States, according to state media, as mediators reported progress toward a definitive US‑Iran deal that could end the Gulf conflict.

Deutsche Bank analyst Jim Reid said, “The latest developments out of the Middle East have turned more constructive,” adding that increased oil flows through the Strait of Hormuz were helping to calm markets.

Switzerland stated that conditions were in place for additional US‑Iran talks aimed at securing a long‑term settlement within 60 days.

Last week, Tehran and Washington signed a memorandum of understanding to lay the groundwork for negotiations, following a 40‑day war that was succeeded by weeks of an inconclusive and frequently breached ceasefire.

Negotiators intend to address some of the most intractable issues that have plagued US‑Iranian relations for decades, such as Tehran’s nuclear program and enriched uranium.

– UK shakeup –

In Britain, Starmer’s exit could lead to a new finance minister and higher public spending, a scenario that has