Monday 22 June 2026 6:21 am | Updated: Monday 22 June 2026 4:10 pm

As it happened: FTSE 100 finishes higher as US-Iran talks progress and Starmer resigns; Space X shares fall after bond sale

Aerial view of ships navigating the strategic Strait of Hormuz, highlighting its importance to global maritime trade routes — Iran says it has closed the Strait of Hormuz (AP/PA Images)

Welcome back to the City AM liveblog.

Markets are set to start off the new week facing renewed threats on both the domestic and geopolitical front.

Over the weekend, fractures that were forming in the US-Iran peace deal burst wide open after Iran’s top military command said it shut the Strait of Hormuz after “violations” of the ceasefire.

The regime in Tehran said the closure was a response to Israel’s continued attacks in southern Lebanon, according to Iran’s semi-official Tasnim news agency. In the two nation’s memorandum of understanding (MOU) – that was signed on Friday in a bid to end the war – a clause details the “immediate and permanent termination of military operations on all fronts, including in Lebanon”.

Donald Trump told Fox News on Sunday that Iran “won’t have a country” if the Strait of Hormuz – where around a fifth of the world’s oil supply flowed through prior to the war – is closed.

“You won’t even make it back to your f****** country, we’ll take over the rest of the country,” he said.

But mediators Qatar and Pakistan have said the first round of negotiations between the US and Iran to reach a final deal to end the war has ended with “encouraging progress”.

Vice-president JD Vance launched negotiations on Sunday with Tehran’s negotiators in Switzerland over Iran’s nuclear program and establishing long-term peace following Friday’s deal.

Investors in the domestic-focused equities on the London Stock market are also facing new developments in Westminster after Sir Keir Starmer resigned as Prime Minister on Monday.

The Labour leader had faced mounting pressures since the local elections and the return of Andy Burnham – who officially becomes an MP this afternoon – has exacerbated pressures.

We’ll be bringing you the latest market reaction and analysis throughout the day. For the latest updates in politics, head to our Westminster liveblog here.