Good morning and welcome to FirstFT. In today’s newsletter:

• The latest on US-Iran peace talks

• Bank lending to UK businesses falls

• Dealmakers warn of EU merger policy confusion

• How Europe learnt to love subsidies

We begin with efforts to reach a lasting agreement to end the Iran war.

The latest: Donald Trump has told US negotiators “not to rush into a deal” with Iran, saying “both sides must take their time and get it right”.

The US president’s remarks, in a post to his Truth Social platform, came a day after he suggested that an agreement was close, claiming it had “largely been negotiated”.

Trump said on Saturday “final aspects and details” of a deal that would open the Strait of Hormuz were “being discussed” and would “be announced shortly”.

Trump tempered that optimism by posting on Sunday that the deal “isn’t even fully negotiated yet”. A senior US administration official said the Iran agreement would not be signed on Sunday, but that progress had been made.

Market reaction: The positive signals caused oil prices to fall below $100. Brent crude, the international oil benchmark, slipped 4 per cent from Friday’s close to $99.41 a barrel during early Asian trading on Monday.

Asian stock markets rose, with Japan’s Nikkei 225 index climbing more than 3 per cent. US and European stock futures also advanced. Read the full story.

• ​Republican backlash: Several lawmakers have warned that the US president was willing to give away too much in Iran talks.  

Here’s what else I’m keeping tabs on today:

• France, Germany, UK and US: Financial markets are closed due to public holidays.

Five more top stories

1. Bank lending to British businesses has fallen to its lowest level for nearly 30 years, as weak economic growth and tighter regulation on lenders sap credit for small firms in particular. Lenders have instead shifted their activity to real estate companies.

2. Europe’s dealmakers say uncertainty in Brussels is already complicating merger plans, as squabbling within the European Commission clouds a promised overhaul of EU competition policy.

• Risks to financial system: The European Central Bank has summoned lenders to a meeting tomorrow to discuss cyber security risks exposed by the latest AI models.

3. UK universities are laying off staff and cutting research and teaching, according to a survey that points to the impact of falling international student numbers on the sector.

• Leaving academia: Young PhD holders faced with limited university jobs are switching to a career in industry.

4. Fertiliser companies are cutting production of one of the most vital crop nutrients as the conflict in the Middle East disrupts supply chains, intensifying concerns over food shortages.

5. The Duke of Norfolk will host a luncheon event for Reform UK donors at the 11th-century Arundel Castle this week, as party chief Nigel Farage makes inroads with the British aristocracy at the same time as courting working-class voters.

The Big Read

Brussels has loosened the rules to allow EU governments to extend more subsidies to industry. Businesses, which had grown accustomed to financial support during a number of crises, were already under pressure from Chinese competition. Now the Iran war has pushed up energy bills and companies are seeking help.

We’re also reading . . . 

• Tech’s state-like reach: When private power reaches a systemic threshold, oversight is a necessity, writes Richard Falkenrath of the Johns Hopkins University School of Advanced International Studies.

• ‘Ungovernable’ Britain: Political stability is needed if the country is ever to solve its problems, writes Martin Wolf.

• Labour’s four tribes: The party factions’ dividing lines are coming into focus as Prime Minister Keir Starmer faces a leadership challenge.

How have you been affected by Brexit? Ten years on from the UK’s vote to leave the EU, the FT would like to hear how the decision made a difference to you or your work. Fill out our survey.

Chart of the day

ExxonMobil is building the world’s largest carbon capture and storage business on the US Gulf Coast as the oil major seeks to connect industrial customers to a 900-mile network of pipelines that can transport carbon dioxide into porous rock formations deep underground.

Take a break from the news

Are you tired of hearing about Gen Z in the office? Pilita Clark is too, arguing that mindless generational labels do not help at a time when the workplace is one of the few places where young and old mix.

Additional contributions from Benjamin Wilhelm