FX.co ★ Sterling Trades at Over One-Month High

The British pound traded just above $1.34, its strongest level since late February, and was on track for a weekly gain of nearly 1.5% against the US dollar. Market focus remained on the fragile US-Iran ceasefire and the high-stakes negotiations scheduled in Pakistan this weekend. Tehran continued to enforce a near-total blockade of the Strait of Hormuz, triggering the most severe disruption to global energy supplies on record, while insisting that Lebanon be included in any peace talks. At the same time, US President Trump struck a mixed tone—initially voicing optimism about a possible agreement, then later warning Iran over new fees imposed on vessels transiting the vital waterway. On the monetary policy front, surging oil prices rekindled inflation worries and led markets to price in a more hawkish Bank of England, with traders now expecting at least one rate hike by the BoE before the end of 2026.