Daily Digest — 12 Apr 2026

Diplomatic tensions dominated global markets today as US-Iran peace negotiations in Pakistan collapsed after 21 hours of marathon talks. Vice President JD Vance declared that Iran “chose not to accept our terms”, with nuclear ambitions reportedly at the centre of the impasse. The failure sent ripples through risk assets, with Bitcoin falling 1.6% and other cryptocurrencies declining as investors fled to safety.

Oil markets remained volatile, dropping 1.3% to $96.57 despite ongoing tensions in the Gulf region. Pakistan’s Foreign Minister urged both sides to uphold their existing ceasefire, highlighting Islamabad’s crucial mediating role. Gold declined 0.6% as traders assessed whether the diplomatic breakdown increases regional conflict risks or simply maintains the status quo.

In the UK, political developments added domestic pressure as the government was forced to shelve Chagos Islands legislation after losing US support, while Conservative leader Kemi Badenoch promised to reinstate the two-child benefit cap to fund what she called Britain’s biggest peacetime rearmament effort.

Technology stocks found mixed footing as Walmart-owned Flipkart’s aggressive expansion threatens India’s quick commerce startups, while SpaceX maintained its $603 million Bitcoin position despite reporting nearly $5 billion losses from xAI investments. Currency markets showed modest strength in European assets, with both the Euro and Pound gaining against the Dollar as traders positioned for continued geopolitical uncertainty.