UK Gilt Yields Retreat After Trump Delays Iran Strikes

2026-03-23 11:52 By Joana Ferreira 1 min. read

The UK’s 10-year gilt yield pulled back to 4.9%, after earlier surging to 5.096%, its highest since July 2008, as tensions eased following President Trump’s five-day delay in planned strikes on Iran.

The move, framed as a response to "very good and productive" talks with Tehran, temporarily calmed markets ahead of a 48-hour US deadline for Iran to reopen the Strait of Hormuz.

However, Iran’s state-run Fars News Agency dismissed the claim, reporting no direct or indirect talks with the US and suggesting Trump’s retreat followed Iran’s threat to target all West Asian power plants.

Investors continue to bet on multiple BoE rate hikes in 2026, abandoning pre-war expectations of two cuts, as policymakers prioritize inflation control amid the UK’s exposure to energy disruptions.

Attention now shifts to February CPI, retail sales, March PMI, and consumer confidence data, which may further influence the central bank’s stance amid the ongoing crisis.



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UK Gilt Yields Retreat After Trump Delays Iran Strikes
The UK’s 10-year gilt yield pulled back to 4.9%, after earlier surging to 5.096%, its highest since July 2008, as tensions eased following President Trump’s five-day delay in planned strikes on Iran. The move, framed as a response to "very good and productive" talks with Tehran, temporarily calmed markets ahead of a 48-hour US deadline for Iran to reopen the Strait of Hormuz. However, Iran’s state-run Fars News Agency dismissed the claim, reporting no direct or indirect talks with the US and suggesting Trump’s retreat followed Iran’s threat to target all West Asian power plants. Investors continue to bet on multiple BoE rate hikes in 2026, abandoning pre-war expectations of two cuts, as policymakers prioritize inflation control amid the UK’s exposure to energy disruptions. Attention now shifts to February CPI, retail sales, March PMI, and consumer confidence data, which may further influence the central bank’s stance amid the ongoing crisis.
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