The FTSE 100 (^FTSE) and European stocks advanced on Wednesday, following strong gains in Asia overnight, as the Trump administration offered a 15-point ceasefire plan to Iran, according to reports. It comes even as the US military is preparing to call up at least 1,000 more troops to supplement some 50,000 troops already in the region.
The plan was submitted to Iran by intermediaries from Pakistan, who have offered to host renewed negotiations between Washington and Tehran.
The US president also repeated earlier claims, that Iran has no remaining navy, leaders or radar, calling the operation a “tremendous success”.
Read more: UK inflation held at 3% ahead of Iran war
On peace talks, he said: “We’re talking to the right people and they want to make a deal so badly.”
However, Iran’s Revolutionary Guards said it had launched a new wave of attacks against locations in Israel including Tel Aviv and Kiryat Shmona, as well as US bases in Kuwait, Jordan and Bahrain, according to Iranian state media.
An Iranian military spokesperson, Ebrahim Zolfaghari, mocked the US attempts at a ceasefire deal, insisting the US were only negotiating with themselves.
Elsewhere, official figures showed that the UK inflation remained at an annual rate of 3% in February, the same reading as the month before. Economists had expected the consumer prices index (CPI) to stay steady 3% before a sharp slowdown in March and April towards the Bank of England’s 2% target.
Clothing made the largest upward contribution to the monthly change while motor fuels made the largest, offsetting downward contribution, the Office for National Statistics said, with prices collected before the start of the conflict in the Middle East and subsequent rise in crude oil prices.
Chancellor Rachel Reeves said: “In an uncertain world we have the right economic plan, taking a responsive and responsible approach to supporting working people in the national interest.”
“We’re taking £150 off energy bills [from measures in November’s budget] and providing targeted support for those facing higher heating oil costs. We’re also acting to protect people from unfair price rises if they occur, bring down food prices at the till, and cut red tape to boost long-term energy security – building a stronger, more secure economy.”
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London’s benchmark index (^FTSE) was around 1% higher in early trade, back over the 1,000 point mark.
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Germany’s DAX (^GDAXI) rose 1.8% and the CAC (^FCHI) in Paris headed 1.5% into the green.
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The pan-European STOXX 600 (^STOXX) was up 1.4%.
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Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green.
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The pound was flat against the US dollar (GBPUSD=X) at 1.3420.