Stocks rally after Trump says US could leave Iran in a few weeks

The FTSE 100 (^FTSE) and other European markets rallied on Wednesday morning, after president Donald Trump said that the US could end its military operation in Iran within two to three weeks. Trump told reporters at the White House on Tuesday that the US would be leaving Iran “very soon”, adding that an exit could happen “within two weeks, maybe two weeks, maybe three”. The president also said that Iran “doesn’t have to make a deal”.

The White House later said that Trump will deliver an address to the nation at 9pm ET on Wednesday to “provide an important update on Iran”. Stocks jumped, while oil prices have plunged, in early European trading on hopes of an end to the conflict in the Middle East. Brent crude futures (BZ=F) slid 4% to $99.73 per barrel, while West Texas Intermediate (CL=F) futures were down 3% to $98.23 a barrel at the time of writing.

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Emma Wall, chief investment strategist at Hargreaves Lansdown, said: “Markets paint an optimistic picture this morning – choosing to believe the optimism from the White House that the war in Iran will be over in a couple of weeks.”

“Trump’s comments suggest that the US will call victory soon and remove their presence from the region, despite no deal being reached with Iran,” she said.

“While this is expected to provide an immediate boost to stocks, energy disruption would continue for some months, and likely impact both inflation and economic growth,” Wall added. “We think the Bank of England holds rates during this period.”

Over in the UK, prime minister Keir Starmer is due to hold a press conference on Wednesday morning at to share the government’s plans to support people impacted by price rises caused by the Iran war.

Here’s how markets are faring on Wednesday morning:

London’s benchmark index (^FTSE) surged 1.8% in early trading
Germany’s DAX (^GDAXI) soared 2.8% and the CAC (^FCHI) in Paris headed 2.3% into the green
The pan-European STOXX 600 (^STOXX) was up 2.4%
On Wall Street, futures linked to the S&P 500 (ES=F) rose 0.7% as contracts on the Nasdaq 100 (NQ=F) climbed 1%. Dow futures (YM=F) inched up 0.6%.
The pound was 0.4% higher against the US dollar (GBPUSD=X) at $1.3279.

Follow along for live updates throughout the day:

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Berkeley shares plunge nearly 18%

In London, housebuilder Berkeley (BKG.L) was the biggest faller on the FTSE 100 (^FTSE) on Wednesday morning, with shares plunging 17.7% in early trading.

The stock dropped after the housebuilder said it was proposing to not acquire more new land, citing the “continuous increase in the tax and regulatory burden on residential development”.

In a strategy update, published on Wednesday, Berkeley said it expected to deliver pre-tax profit of £450m for the 2026 financial year.

The company said that it had begun to see signs of a “modest recovery” in sales volumes in the first two months of 2026.

“However, we indicated in our trading update, that recent geopolitical events and the macroeconomic consequences, including reduced potential for further rate cuts, could reduce confidence in a near-term market recovery,” the housebuilder said. “This has now become a reality.”

Chris Beauchamp, chief analyst at IG, said: “The warnings about the UK economy continue to filter through, Berkeley being the latest to sound the alarm. While it remains on track to hit targets, the move to reduce investment and halt new land acquisition is a sign of a company pulling up the drawbridge to await better times.”

“While sensible, it has given investors a new reason to abandon the shares, sending them to a decade low in early trading.”
Nike shares slip on weak outlook

Overnight, shares in sportswear giant Nike (NKE) have slid and were down more than 9% at the time of writing in pre-market trading.

The decline in shares comes after the company offered a weak outlook for the fourth quarter, following the release of its latest results.

Nike chief financial officer (CFO) Matt Friend said on an earnings call on Tuesday that the company expected revenue in the fourth quarter to be down 2% to 4%, “with modest growth in North America despite lapping of value liquidation in the prior year, largely offset by declines in Greater China and Converse.”

“We expect Greater China to be down approximately 20% in the fourth quarter, reflecting reduced sell-in that we highlighted last quarter, as well as accelerated actions to clean up the marketplace,” he said.

For the third quarter, Nike topped expectations, reporting adjusted earnings per share (EPS) of $0.35, versus Wall Street analyst estimates of $0.31, according to Bloomberg data. Revenue of $11.3bn was flat year-on-year but higher than the $11.34bn anticipated by analysts.
‘Coiled spring unleashed’ in markets

Richard Hunter, head of markets at Interactive Investor, said: “A coiled spring was unleashed as investors saw clear light at the end of the tunnel for an end to the hostilities in the Middle East.

“With a mountain of cash reportedly on the sidelines, investors had been waiting for a trigger to put the money to work. This was provided by the US resident confirming a timeline of two to three weeks before the US retreats, leaving others to restore trading through the Strait of Hormuz. At the same time, the Iranian President was said to be open to ending the war, subject to certain guarantees.”
Coming up

Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what’s moving markets, and what’s happening across our global economy.

Looking at the day ahead now, and UK prime minister Keir Starmer is set to hold a press conference at Downing Street at 10am BST.

Meanwhile, in the US, the latest ADP employment report is due out later in the day, along with retail sales data.

Stay tuned for updates throughout the day!

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Berkeley shares plunge nearly 18%

Nike shares slip on weak outlook

‘Coiled spring unleashed’ in markets

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