Brent crude drops by 5% after US president claimed talks on Middle East peace deal would resume

Crude oil prices fell sharply while stocks and government bonds rallied on Monday after Donald Trump cancelled planned strikes on Iran and claimed peace talks were about to resume.

Brent crude was trading 5% lower at $83.47 a barrel by lunchtime, after falling as much as 7.3% to $81.55 a barrel. US West Texas Intermediate dropped more than 5% to $79.47 a barrel.

Proposed $400bn tie-up with Bristol Myers Squibb would create world’s fourth-largest drugmaker but analysts question rationale

More than £17bn was wiped off the value of Britain’s biggest drugmaker, AstraZeneca, on Monday after a report that it was in discussions to take over its US rival Bristol Myers Squibb in a deal that would create a near $400bn (£300bn) pharmaceutical group.

AstraZeneca, run by Pascal Soriot, its longtime chief executive, had been worth nearly £196bn before the news broke. BMS, headquartered in Princeton, New Jersey, and known for its cancer treatments, was worth $133bn (£98bn).