Iraqi offer eases petrol price fears

Stock markets around the world soared at news that Iraq had offered to let weapons inspectors return.

Fears of rocketing petrol bills eased when crude oil prices fell. They tumbled by $1.36 a barrel to $28.31 - more than $2 below the 19-month high reached last month.

Shares soared higher in the Far East, while London's blue chip index, the FTSE 100, was expected to open at least 100 points higher.

Meanwhile, the price of gold - seen as a safe haven by investors in times of international tension - fell back more than $3 to $314.25.

Analysts said it was premature to read too much into Iraq's offer last night after a sceptical response from the White House.