UK and European equities were firmer today, supported by improved risk appetite as investors responded to signs of diplomatic progress around the US-Iran conflict and the possible reopening of the Strait of Hormuz. London’s market was steadier, with miners and industrial names helping offset weakness in oil majors, while continental Europe benefited from strength in banks, travel and selected cyclicals. The broader tone was constructive, although investors remained alert to energy-price volatility, inflation risks and the implications for central-bank policy.

US markets remained close to record territory after the previous session’s gains, with sentiment underpinned by resilient corporate earnings and a softer inflation backdrop. Technology leadership continued to support the broader market, while Treasury yields were broadly stable and the dollar edged higher. Investors remained focused on whether geopolitical de-escalation can sustain the recent improvement in risk appetite without reigniting concerns over growth or monetary policy.

Asia-Pacific markets were generally positive, led by strong gains in Japan, Australia, South Korea and parts of Hong Kong, as the region followed Wall Street higher and responded favourably to lower oil prices. Chinese markets were more mixed, reflecting a more cautious domestic tone, but the wider regional backdrop was helped by easing energy concerns and renewed appetite for risk assets.

Oil prices moved lower as hopes grew that a ceasefire extension and a diplomatic framework could lead to the reopening of the Strait of Hormuz. The market remains highly sensitive to headlines from the region, but today’s price action suggested traders were beginning to reduce some of the geopolitical risk premium that had built into crude during the recent disruption.

Gold was modestly firmer as investors balanced the prospect of geopolitical de-escalation against uncertainty over inflation, the dollar and the future path of US interest rates. The metal continues to draw support from residual caution around the Middle East, although steadier yields and improved equity sentiment are limiting stronger safe-haven demand.

Ocado was a notable focus in London after announcing an ecommerce partnership with Asda, with the agreement expected to support Asda’s online grocery operations across the UK. The update was well received by investors and helped lift sentiment toward the stock, reinforcing the market’s willingness to reward clearer evidence of commercial progress in technology-enabled retail platforms.

BP remained under scrutiny following the removal of chair Albert Manifold, with further reports pointing to shareholder concerns over governance, conduct and boardroom relations. The episode has weighed on confidence in the shares and risks distracting from the group’s operational and strategic priorities at a time when oil-market volatility is already creating a more complicated backdrop for the sector.