Oil prices slide as US and Iran pause strikes; AstraZeneca tops profit forecasts

Oil prices slid sharply as the United States halted its bombing campaign against Iran for a second consecutive night. Brent crude dropped 7.1% to $89.94 a barrel, after hitting $100 last week. Military advisors recommended that Donald Trump stop the strikes, and Iran announced on Sunday it would pause "retaliatory" attacks on US allies in the region. Jim Reid of Deutsche Bank noted that while this is not a formal ceasefire, both sides view it as an opportunity for diplomacy. US officials stressed that all military options remain on the table, but internal debates continue over the effectiveness and cost of further strikes. Traffic through the Strait of Hormuz remains severely disrupted, and the conflict has expanded to the Red Sea, where Iran-backed Houthi forces launched missile and drone attacks on Saudi energy infrastructure.

European stock markets rallied on the oil price drop. The Stoxx Europe 600 rose 0.9%, the UK's FTSE 100 gained 0.5%, and France's CAC 40 and Germany's DAX rose 1.1% and 1.5% respectively. Lower oil prices also pushed bond yields down, with the UK 10-year gilt yield falling about 5 basis points to 4.98%.

AstraZeneca posted better-than-expected second-quarter results, with earnings per share rising 18% to $2.63. Revenue grew 5% at constant currency to $15.38bn, driven by strong sales of cancer treatments.

Vodafone reported a 9.7% rise in first-quarter revenue to €10.3bn, and expects full-year adjusted earnings between €13bn and €13.3bn.

In London, DCC Energy agreed to a £5.75bn takeover by private equity firms KKR and Energy Capital Partners. Shareholders will receive £65.25 per share in cash plus a potential additional payment.

Chinese fast-fashion giant Shein reported a $99m net loss in the first quarter, compared with a $395m profit a year earlier. The removal of a US import duty exemption for small packages in May hurt sales, and Shein is considering raising prices in the US market.