Caroline Hepker

Those are the markets.

And I'm Caroline Hepker.

The plans around the change of leader leave Prime Minister Keir Starmer in office but not in power.

Despite winning a landslide election on a slogan promising change, the UK leader is set to depart Downing Street by September.

Bloomberg's James Walcock has more.

Now, the U.S.

is issuing a 60-day license allowing Iran to sell oil on the international market as talks about a peace deal continue.

The move gives Tehran an economic lifeline, with oil prices dropping on the signs of progress.

U.S.

President Donald Trump says negotiations are going well.

But the president's optimism is being challenged by continued fighting in Lebanon that threatens to derail talks.

Tehran indicated that it wouldn't relent on using leverage over Hormuz if Israel continues fighting in Lebanon.

Now, let's talk about the French and German governments, which have agreed to hold equal shares in the defence firm KNDS as it prepares to IPO.

That's according to a statement released by both countries yesterday.

In a separate announcement, Friedrich Merz's government said that it is seeking a 40% stake in the firm, subject to the approval of Parliament.

The news comes after Germany reached an agreement over the weekend with KNDS's family owners to take a stake in a deal valuing the business between 15 and 18 billion euros.

Now, the listing is set to be one of Europe's biggest in recent years.

France holds 50% of KNDS and has been planning to sell shares in the IPO in order to cut its stake to about 40%.

Okay, so those are our top stories for you today.

Now, looking at the market, stocks slumping.