Oil tumbles and stock markets soar on hopes Middle East war will end soon, as Bank of England warns of ‘substantial negative supply shock’ – business live

07.00 EDT Lunchtime summary As the clocks ring noon in the City of London, here’s the situation. European and Asia-Pacific stock markets have rallied sharply, after Donald Trump signalled that the Iran was could end soon. The UK’s FTSE 100 share index is up 1.9% now at 10,369 points, up 192 points to a two-week high. The pan-European Stoxx 600 index is up 2%, with gains in Frankfurt, Paris, Madrid and Milan. Earlier, Japan’s Nikkei jumped by 5%, with analysts reporting a ‘roar of recovery’ in the markets . Investors are piling back into shares after the US president indicated the conflict with Iran could end in two weeks. Trump said: Now we’re finishing the job. I think in two weeks or maybe a few days longer, we’ll do the job. We want to knock out everything they’ve got. Iranian president Masoud Pezeshkian has reportedly said Iran is willing to end the war but only if there are guarantees “to prevent the recurrence of aggression”. These encouraging signs from Washington DC and Tehran have also pushed oil down. Brent crude fell below the $100 a barrel level this morning, having traded as high as $118 a barrel yesterday. It’s now changing hands at $102.92 a barrel. Hopes of de-escalation, and an easing in the energy crisis, have pushed down the yield (or interest rate) on UK government bonds , and encouraged City traders to bet on fewer interest rate rises this year.