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Investing.com -- U.K. shares of airline and travel stocks popped on Tuesday after the U.S. president, Donald Trump declared a ceasefire between Israel and Iran after a nearly two-week war.
EasyJet PLC (LON:EZJ) and Wizz Air Holdings (LON:WIZZ) jumped more than 6% and 3%, respectively, as of 09:28 GMT. Jet2 PLC (LON:JET2) and Hays (LON:HAYS) also climbed around 3%, while Germany-listed Tui AG NA (ETR:TUI1n) surged over 7%.
However, later on Tuesday, Israeli Defence Minister Israel Katz said he had instructed the military to strike targets in Tehran, accusing Iran of firing missiles and thereby breaching the ceasefire announced just hours earlier.
Iran rejected the accusation, with its armed forces’ general staff denying any missile launches toward Israel, according to state-linked outlet Nour News.
The exchange cast immediate doubt over the durability of the ceasefire, which was meant to bring an end to nearly two weeks of conflict.
Katz said in a statement that he had ordered the military to “continue high-intensity operations targeting regime assets and terror infrastructure in Tehran” due to “Iran’s blatant violation of the ceasefire declared by the President of the United States.”
Trump had earlier posted on Truth Social: “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!” Both Israel and Iran had confirmed the truce following the U.S. president’s announcement.
Israeli Prime Minister Benjamin Netanyahu said the June 13 strike had fulfilled its aims of dismantling Iran’s nuclear program and missile arsenal.
Tehran, which maintains that its nuclear programme is for peaceful purposes, dismissed claims that it is developing nuclear weapons.
Iran’s Supreme National Security Council said Israeli forces had been compelled to “unilaterally accept defeat and accept a ceasefire.” The council added that Iranian forces would “keep their hands on the trigger” to respond to “any act of aggression by the enemy.”
Iranian Foreign Minister Abbas Araqchi earlier stated that Iran would stop retaliatory attacks if Israel ceased hostilities starting at 4:00 a.m. Tehran time.
Financial markets reacted swiftly to the ceasefire news, with global equities rallying and oil prices dropping, amid hopes that the conflict might be winding down just two days after U.S. airstrikes targeted Iranian nuclear sites.
FTSE 100 advanced 0.3% while S&P 500 futures rose 0.8%.
The price of Brent crude slid over 3% to $69.18.