FX.co ★ Sterling Weakens Amid US-Iran Crisis

The British pound traded at $1.341, edging down from last week’s one-month peak of $1.348, after US-Iran talks collapsed over the weekend. The breakdown came after Iran refused to abandon its nuclear ambitions and denounced what it described as “excessive” US demands. As tensions escalated, US President Donald Trump threatened to blockade the Strait of Hormuz, a vital oil transit chokepoint, driving Brent crude up to about $102 per barrel. The surge in oil prices has intensified the global energy crisis, stoking fears of an inflation shock and leading markets to position for a more hawkish Bank of England. Traders now expect at least one interest rate hike by the end of 2026.