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08.04.202607:45:53UTC+00Sterling Rallies as US-Iran Truce Eases Risk

The British pound climbed 1% to $1.34, approaching its strongest level since late February, after the US and Iran agreed a last-minute two-week ceasefire ahead of President Donald Trump’s deadline. Under the deal, the US-Israel offensive will be paused in exchange for Iran reopening the Strait of Hormuz, prompting cautious optimism about a short-term easing of Middle East tensions, even as underlying conflicts remain unresolved. The truce has strengthened risk appetite, and a sharp drop in oil and gas prices has led investors to scale back expectations for Bank of England rate hikes. Markets now anticipate just one rate increase in 2026, down from two prior to the agreement.

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