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U.S. Treasury yields fell on Wednesday after the U.S. and Iran agreed to a two-week pause in hostilities.
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Air strikes hit the Tyre and Nabatieh areas hours after the US-Iran ceasefire was announced.
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President Donald Trump agreed to the ceasefire with Iran after discussions with Pakistan Prime Minister Shehbaz Sharif.
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As part of the agreement, set to take effect immediately, Trump said the U.S. and Israel would suspend bombing Iran for two weeks, subject to Iran following through on its commitment to reopen the Strait of Hormuz for safe passage during the ceasefire period.
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The prime minister welcomes the deal, saying the UK will do "all we can to support and sustain this ceasefire".
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The path to the two-week ceasefire with Iran may have fundamentally altered the way the rest of the world views the US.
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The provisional truce comes more than a month after the US and Israel launched coordinated attacks on Iran.
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Oil prices plunged and U.S. stock futures soared after President Donald Trump announced "a double sided ceasefire" in the war with Iran.
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