Pound Weakens Slightly on US-Iran Standoff

2026-04-23 06:20 By Joana Ferreira 1 min. read

The British pound slipped below $1.35 against the US dollar today, reflecting market unease as tensions between the US and Iran persist.

With no progress in peace talks, both countries remain at odds over control of the Strait of Hormuz.

US President Trump confirmed that the truce agreed on April 7 will stay in place indefinitely, awaiting a new proposal from Iran, though Iranian officials have indicated no immediate intention to participate in further negotiations.

On the UK political front, Morgan McSweeney, former chief of staff to Prime Minister Keir Starmer, is scheduled to appear before the Foreign Affairs Select Committee next Tuesday.

The hearing follows claims by ex-Foreign Office chief Olly Robbins that Downing Street questioned the need for vetting Peter Mandelson.

Meanwhile, Labour MP Jonathan Brash, who won Mandelson’s former Hartlepool seat in 2024, argued that the ongoing scandal has paralyzed the government, making Starmer’s resignation inevitable.



News Stream
Pound Weakens Slightly on US-Iran Standoff
The British pound slipped below $1.35 against the US dollar today, reflecting market unease as tensions between the US and Iran persist. With no progress in peace talks, both countries remain at odds over control of the Strait of Hormuz. US President Trump confirmed that the truce agreed on April 7 will stay in place indefinitely, awaiting a new proposal from Iran, though Iranian officials have indicated no immediate intention to participate in further negotiations. On the UK political front, Morgan McSweeney, former chief of staff to Prime Minister Keir Starmer, is scheduled to appear before the Foreign Affairs Select Committee next Tuesday. The hearing follows claims by ex-Foreign Office chief Olly Robbins that Downing Street questioned the need for vetting Peter Mandelson. Meanwhile, Labour MP Jonathan Brash, who won Mandelson’s former Hartlepool seat in 2024, argued that the ongoing scandal has paralyzed the government, making Starmer’s resignation inevitable.
2026-04-23
Pound Slightly Up on Middle East Optimism
The British pound rose to $1.352, buoyed by hopes of easing tensions in the Middle East and as investors analyzed the latest UK inflation figures. US President Trump extended the Iran ceasefire indefinitely, despite stalled talks and an ongoing US naval blockade in the Strait of Hormuz. He stated that Pakistan, mediating the discussions, urged restraint but insisted the blockade would remain unless Iran concedes. Meanwhile, Iran’s Tasnim news agency hinted at possible US flexibility on the blockade. Economically, UK headline inflation for March reached 3.3%, up from 3.0% in February, largely driven by rising petrol prices due to the Iran war. Core inflation softened slightly to 3.1% from 3.2%, falling just below forecasts, while services inflation edged higher to 4.5% from 4.3%. Traders have slightly reduced their expectations for Bank of England rate hikes this year, pricing in around 39 basis points of increases, still pointing to two hikes.
2026-04-22
Sterling Steady as Political Scandal and Middle East Tensions Weigh
The pound held around $1.35, just below last week’s three-week high, as markets grappled with political instability and rising geopolitical risks. Olly Robbins, the former Foreign Office chief who was removed from his position by Prime Minister Keir Starmer due to the Peter Mandelson ambassador controversy, revealed in his testimony that while he experienced pressure to greenlight Mandelson’s appointment, there was no direct engagement with No. 10 throughout the vetting procedure. Meanwhile, Iran denied sending a delegation to Pakistan for US talks, while President Trump accused Iran of repeated ceasefire violations, escalating tensions. On the economic front, UK jobs data showed slowing wage growth, a surprise drop in unemployment, and fewer vacancies, though the report had little market impact, as it reflects pre-war conditions and fails to capture the current labor landscape.
2026-04-21