Pound Slightly Down as US-Iran Talks Stall

2026-04-28 08:00 By Joana Ferreira 1 min. read

The pound edged lower to $1.35 as the US-Iran impasse continues and domestic political pressures weigh on markets.

Tensions intensified after a US official revealed President Donald Trump’s dissatisfaction with Iran’s latest proposal, which sought to delay nuclear program negotiations until the ongoing conflict and shipping disputes are resolved.

In the UK, Prime Minister Keir Starmer faces a pivotal vote on Tuesday over whether to investigate his assurances to Parliament regarding the appointment of Peter Mandelson as US ambassador.

While Starmer’s allies remain confident of securing the vote, the controversy risks overshadowing next week’s crucial local elections.

Investors are also focused on the Bank of England’s policy decision on Thursday, with the central bank widely expected to hold interest rates at 3.75% amid the Middle East crisis.

Analysts anticipate a near-unanimous or strong majority vote to maintain the current stance.



News Stream
Pound Slightly Down as US-Iran Talks Stall
The pound edged lower to $1.35 as the US-Iran impasse continues and domestic political pressures weigh on markets. Tensions intensified after a US official revealed President Donald Trump’s dissatisfaction with Iran’s latest proposal, which sought to delay nuclear program negotiations until the ongoing conflict and shipping disputes are resolved. In the UK, Prime Minister Keir Starmer faces a pivotal vote on Tuesday over whether to investigate his assurances to Parliament regarding the appointment of Peter Mandelson as US ambassador. While Starmer’s allies remain confident of securing the vote, the controversy risks overshadowing next week’s crucial local elections. Investors are also focused on the Bank of England’s policy decision on Thursday, with the central bank widely expected to hold interest rates at 3.75% amid the Middle East crisis. Analysts anticipate a near-unanimous or strong majority vote to maintain the current stance.
2026-04-28
Sterling Recovers Above $1.35 as Markets Eye Data
The pound steadied above $1.35, bouncing back from two-week lows, as investors await a packed week of economic data and global rate decisions while tracking US-Iran peace talks. The Bank of England is widely expected to hold rates at 3.75% amid the Middle East crisis, with analysts anticipating a near-unanimous or strong majority vote to maintain the status quo. This follows March’s UK inflation report last week, which showed CPI at 3.3% year-over-year, fueled by surging fuel prices, leading markets to price in at least two rate hikes this year, up from one, with a possible third. Adding to the economic pressures, oil prices have surged as the Strait of Hormuz remains blocked and US-Iran negotiations stalled. Political uncertainty is also rising ahead of the May 7 local elections, with Prime Minister Keir Starmer facing criticism over his appointment of Peter Mandelson as US Ambassador.
2026-04-27
Pound Rises on US-Iran Talk Hopes
The pound climbed toward $1.35, rebounding from two-week lows, supported by cautious optimism over US-Iran peace negotiations combined with signs of rising inflation and robust consumer demand. Iranian Foreign Minister Abbas Araghchi is expected in Islamabad tonight, with Pakistani sources indicating a "high likelihood of a breakthrough" in US-Iran talks. Adding to the upward pressure, UK businesses now expect CPI inflation to hit 4% in the year ahead, up from 3.5% in March, according to the Bank of England’s Decision Maker Panel. Meanwhile, UK retail sales rose by 0.7% last month, surpassing expectations, largely driven by motorists stocking up on petrol amid soaring prices linked to the conflict in Iran. The data has intensified expectations for Bank of England rate hikes, with markets fully pricing in two quarter-point increases in 2026 and assigning a probability to a third by year-end.
2026-04-24