The pause in military action represents a significant shift from the bellicose rhetoric of recent days, during which both Washington and Tehran had threatened to target each other's energy infrastructure. Iran had warned it would strike power plants across the Gulf region if the US hit its energy sites, raising fears of a wider conflagration that could devastate the global economy.

The diplomatic opening comes amid intense pressure from allies and markets alike. UK Prime Minister Keir Starmer announced he would chair an emergency Cobra meeting with the Bank of England governor and senior cabinet ministers to discuss contingency measures for the economic fallout from the conflict. Starmer promised to explore "every lever available to the government" to help with rising costs of living.

Meanwhile, Iraq has been drawn deeper into the conflict as the US targets Iran-aligned groups on Iraqi soil, further destabilising a country already struggling with economic difficulties. The regional spillover effects have prompted concern from governments worldwide about the trajectory of the conflict.

Questions also emerged about military outcomes after reports suggested Iran may have brought down a US F-35 stealth fighter, though details remain unconfirmed. The supersonic aircraft is designed to avoid detection by radar, and if confirmed the incident would represent a significant blow to American air superiority claims.