Sterling Holds Near Multi-Week High on Peace Hopes

2026-04-15 11:06 By Joana Ferreira 1 min. read

The British pound traded just below $1.36, near its strongest level since mid-February, as traders weighed optimism over US-Iran peace talks against lingering economic risks.

While mediators reported progress in extending the ceasefire and US President Donald Trump hinted at a potential breakthrough, uncertainty persists following Washington’s plan to deploy 10,000 additional troops to the region.

With the Strait of Hormuz still closed, high energy costs are fueling inflation, leading markets to expect two Bank of England rate hikes this year.

Attention also turns to a high-stakes meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent at the IMF-World Bank Spring Meetings in Washington.

The talks follow Trump’s latest remarks to Sky News, which escalated tensions and raised doubts about last year’s trade agreement.

On Tuesday, Reeves delivered her sharpest criticism yet of Trump’s Middle East conflict, warning of its damaging economic spillover.



News Stream
Sterling Holds Near Multi-Week High on Peace Hopes
The British pound traded just below $1.36, near its strongest level since mid-February, as traders weighed optimism over US-Iran peace talks against lingering economic risks. While mediators reported progress in extending the ceasefire and US President Donald Trump hinted at a potential breakthrough, uncertainty persists following Washington’s plan to deploy 10,000 additional troops to the region. With the Strait of Hormuz still closed, high energy costs are fueling inflation, leading markets to expect two Bank of England rate hikes this year. Attention also turns to a high-stakes meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent at the IMF-World Bank Spring Meetings in Washington. The talks follow Trump’s latest remarks to Sky News, which escalated tensions and raised doubts about last year’s trade agreement. On Tuesday, Reeves delivered her sharpest criticism yet of Trump’s Middle East conflict, warning of its damaging economic spillover.
2026-04-15
Sterling Surges on Middle East Talk Hopes
The British pound rose toward $1.36, reaching its strongest level since mid-February, as investors positioned for potential Middle East peace negotiations, despite the US maintaining its blockade on Iranian ports. With US and Iranian delegations possibly resuming talks in Islamabad this week after their latest round ended without progress, risk sentiment improved, sending oil prices below $100 per barrel. Yet, inflationary pressures from high energy costs are set to persist while the Strait of Hormuz remains closed, leading markets to expect a more hawkish Bank of England. Traders now price in nearly two interest rate hikes by year-end. On the domestic front, UK like-for-like retail sales increased 3.1% in March, fueled by a 6.2% rise in food sales as consumers stocked up for the Easter holiday.
2026-04-14
Sterling Weakens Amid US-Iran Crisis
The British pound traded at $1.341, slipping from last week’s one-month high of $1.348, after US-Iran negotiations collapsed over the weekend. The breakdown followed Iran’s refusal to renounce nuclear ambitions and what Tehran called “excessive” US demands. Escalating tensions, US President Donald Trump threatened to blockade the Strait of Hormuz, a critical oil chokepoint, sending Brent crude soaring to around $102 per barrel. The spike in oil prices has deepened a global energy crisis, raising fears of an inflation shock and prompting markets to brace for a more hawkish Bank of England. Traders have raised their expectations to nearly two interest rate hikes by the end of 2026, an increase from just one anticipated last week.
2026-04-13