FTSE 100 Live: Stocks in stalemate as Iran threatens ‘war beyond region’

Good morning and welcome back to the City AM liveblog.

Donald Trump has warned Iran there are two options that could see the US finishing the war in Iran, with one that will “see a few people killed as opposed to a lot”.

He added: “We could do it either way.”

It’s the latest threat from the White House as it attempts to secure a peace deal with Iran. Trump insisted once again that Iran “want to make a deal so badly” but warned the US had “hit them very hard… we may have to hit them even harder”.

Amidst this, Trump also said he was in “no hurry” to secure a deal. The sentiment marks a blow to the global oil market which has faced drastic shortages since the conflict began after the Strait of Hormuz – a crucial waterway which around a fifth of the world’s supply flows through – became halted..

“We’d have to open the Strait [of Hormuz], that would open immediately. So we’re going to give this one shot,” Trump said when discussing a deal.

Meanwhile, Iran’s Revolutionary Guard has not backed off from its threats and warned it would “extend the war beyond the region” if it faced another US attack.

The foreign minister warned earlier a return to war “will feature many more surprises”. 

We’re expecting to hear from Rachel Reeves in the House of Commons today as the Chancellor attempts to take the next steps to ease the cost-of-living on Brits as global economies deal with the economic shock of the war.

We will be bringing you all the latest on this and more.

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