Daily Digest — 11 May 2026

Markets opened the week on edge as diplomatic tensions escalated across multiple fronts. Trump rejected Iran’s peace counteroffer as “totally unacceptable”, with Tehran reportedly demanding lifting of the US naval blockade and recognition of Iranian sovereignty over the Strait of Hormuz. Oil surged nearly 5% to $99.98 as traders priced in supply risks, while stock futures slid amid the prolonged Middle East conflict uncertainty.

Political instability rippled through the UK as Starmer faces mounting pressure from Labour MPs to quit, with about 40 calling for his resignation and leadership contenders like Wes Streeting and Angela Rayner reportedly preparing bids. The embattled PM will seek to reset his premiership in a speech Monday, though his survival chances appear slim. Meanwhile, the government is expected to announce full nationalisation of British Steel to safeguard blast furnaces and thousands of jobs.

Cryptocurrency markets showed mixed signals as XRP spiked 2.5% above $1.45 on heavy volume, outpacing Bitcoin’s modest 0.2% gain. Elsewhere, a dormant Bitcoin whale from 2013 moved $40 million worth of BTC, highlighting ongoing institutional interest despite regulatory uncertainties.

Global leaders are watching for a potential Trump-Xi summit as world powers eye developments from Singapore to Brussels, with Washington reportedly pressing Beijing to influence Tehran on reopening shipping lanes. Gold retreated 1% to $4,682 as the dollar strengthened against major currencies.