US and Iran agree to two-week ceasefire talks

The FT News Briefing reports on a pivotal diplomatic development: the U.S. and Iran have agreed to a two-week ceasefire and negotiations in Islamabad, following a dramatic last-minute pause by President Donald Trump on planned airstrikes. Trump cited Iran's 10-point proposal as a basis for talks, while Iran expressed deep distrust but agreed to engage, with global oil prices dropping sharply in response. The episode also examines the severe economic fallout from the Iran war, particularly in Europe, where hedge funds have amassed record short positions against European stocks—driven by soaring energy prices, inflation fears, and exposure to global supply disruptions. Key shorted stocks include WizAir and Sainsbury's, reflecting broader concerns about consumer demand and energy costs. Meanwhile, Germany's ambitious defense rearmament efforts are facing a major setback with the failed procurement of a new warship by Dutch firm Darman, plagued by software issues and bureaucratic delays. This failure underscores deeper systemic challenges in European defense cooperation, despite political pressure from both the war in Ukraine and Trump’s unpredictable foreign policy. The episode concludes with a celebratory note on NASA’s Artemis II mission, marking the first crewed lunar flyby in over 50 years.