After the US and Iran reached an agreement, investors lowered their expectations for an interest rate increase in the UK.

After the agreement to end the conflict between the United States and Iran, investors lowered their expectations for the Bank of England to raise interest rates. Following the announcement, Brent crude oil prices fell by 5% to $82.9 per barrel, easing concerns in the market about the risk of inflation from high energy prices. Data from the London Stock Exchange Group shows that investors' current prices reflect expectations for a total of 26 basis points of interest rate hikes in the UK benchmark rate in 2026, down 11 basis points from the expectations reflected on Friday.