President Donald Trump has given Iran a 10 to 15-day deadline to negotiate a nuclear deal as the US military deploys two aircraft carriers and fighter jets to the Middle East. The ultimatum comes amid escalating tensions over Iran's nuclear program and follows recent military buildups in the region.

Meanwhile, Britain posted its largest budget surplus on record, with revenues exceeding spending by £30.4 billion ($41 billion) in January. The figure surpassed economists' forecasts of £24 billion and the Office for Budget Responsibility's projections. The surplus was driven by a surge in capital gains tax inflows and lower debt payments.

The UK's record surplus provides Chancellor Rachel Reeves with fiscal flexibility ahead of the spring budget, though economists caution the windfall may be temporary. For markets, the military buildup in the Middle East has already triggered volatility in oil prices, while the UK's stronger-than-expected public finances have bolstered the pound against major currencies.