The British economy surpassed expectations<\/a> with 0.5% growth in February, compared to forecasts of just 0.1%, according to official data published Thursday. <\/p>\n However, the outbreak of the Iran war at the end of February is set to derail U.K. growth prospects. <\/p>\n The war also had a significant impact on eurozone inflation data, which showed prices rose faster than expected in March at 2.6%, up from initial estimates of 2.5%. <\/p>\n In corporate news, shares in EasyJet<\/a> slumped on Thursday after it warned that the Iran war and higher fuel prices are weighing on customer bookings.<\/p>\n The airline said it took on roughly \u00a325 million ($34 million) in additional fuel costs in the first half due to the U.S-Iran war. It expects airline costs to remain tied to volatile fuel prices over the coming months.<\/p>\n EasyJet’s London-listed shares dropped as much as 8.7% in morning trade, before paring losses to close Thursday’s session down almost 5%.<\/p>\n U.S. President\u00a0Donald Trump<\/a>\u00a0said in an interview broadcast Wednesday that the conflict was “very close to over<\/a>,” fueling market optimism that peace talks could resume and a resolution be found. <\/p>\n Trump later said Thursday that Israel and Lebanon had agreed to a 10-day ceasefire<\/a>, after officials from the two countries met in Washington, D.C.<\/p>\n The Associated Press, citing regional officials, reported Wednesday that the U.S. and Iran had an “in principle agreement” to extend their fragile two-week ceasefire in order to allow for more diplomacy.<\/p>\n But a senior U.S. official told CNBC that the U.S. “has not formally agreed to an extension of the ceasefire.”<\/p>\n “There is continued engagement between the U.S. and Iran to reach a deal,” added the official, who spoke on condition of anonymity to discuss the administration’s internal plans.<\/p>\n Overnight, Japan’s Nikkei 225 hit a record amid a broader rally in Asia markets<\/a>, tracking gains on Wall Street on Wednesday as hopes of a U.S.-Iran deal grew. <\/p>\n In the U.S., both the S&P 500<\/a>\u00a0and\u00a0Nasdaq Composite<\/a>\u00a0hit fresh highs<\/a> ahead of midday trade Thursday, advancing about 0.3% and 0.5%, respectively, as the Dow Jones Industrial Average rose 0.2%.<\/p>\n![\"Bundesbank's](\"https:\/\/www.europesays.com\/europe\/wp-content\/uploads\/2026\/04\/1776402616_85_108292036-17762814701776281465-45285984015-1080pnbcnews.jpg\")
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