Hello, this is Leonie Kidd writing to you from London. Welcome to another edition of CNBC's Daily Open.
It's the most significant development since the onset of the war in Iran, and markets are reacting. The news that a truce has finally been reached between the U.S. and Iran, with Israel's support, has triggered a wave of relief across equity markets.
Some wildcard factors remain, but for now the ceasefire is being met with optimism.
What you need to know today
"I agree to suspend the bombing and attack of Iran for a period of two weeks." The words of U.S. President Donald Trump in a post on Truth Social marked the announcement of a ceasefire between the U.S. and Iran. "We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate."
The news has sparked a global relief rally, with Dow futures gaining more than 1,000 points in early trade, a surge in stocks across Asia, and big gains expected in Europe.
Oil prices are plunging, with Brent and WTI sinking below $100 a barrel.
A statement from Iran's Minister of Foreign Affairs, on behalf of the Supreme National Security Council, said Tehran would stop its defensive operations if attacks against it cease, and that it would allow safe passage through the Strait of Hormuz subject to coordination with its armed forces and with "due consideration of technical limitations."
But just hours into the ceasefire taking effect, many Middle Eastern countries reported incoming missiles and drones from Iran on Wednesday, triggering air defenses across the Gulf.
The Israeli military said it had identified ballistic missile attacks from Iran early Wednesday, with early warnings issued in central and northern parts of the country.
The United Arab Emirates said its air defense systems were intercepting missiles and drones and urged the public to remain in safe places.
Saudi Arabia's Civil Defense organization issued early warnings of "potential danger" across the country, including Riyadh. Kuwait, Bahrain and Qatar also issued alerts or activated defenses as threats emerged across the region.
Crucially, Israel's Prime Minister Benjamin Netanyahu has said the two-week truce will not apply to Lebanon. Speaking to CNBC, Lebanon's Economy Minister told Access Middle East that the ceasefire is "very good news" for the region, but said he hoped his country would be part of it after being "forced into this war."
â Leonie Kidd
And finally...
Anthropic limits Mythos AI rollout over fears hackers could use model for cyberattacks
Anthropic on Tuesday announced an advanced artificial intelligence model that will roll out to a select group of companies as part of a new cybersecurity initiative called Project Glasswing.
The model, Claude Mythos, excels at identifying weaknesses and security flaws within software, and Anthropic is limiting access to try to prevent bad actors from exploiting that capability, the company said.
â Ashley Capoot
