FX.co ★ Sterling Trades at Two-Week High Amid Geopolitical Tensions

The British pound traded just above $1.34, its highest level in more than two weeks, and was on track for a weekly gain of nearly 1.5% against the US dollar. The move came as markets focused on the fragile US-Iran ceasefire and high-stakes negotiations scheduled in Pakistan this weekend. Tehran has maintained a near-total blockade of the Strait of Hormuz, triggering the most severe disruption to global energy supplies on record, while insisting that Lebanon be included in any peace talks. At the same time, US President Trump adopted a mixed stance—initially voicing optimism about a possible agreement, then warning Iran over newly imposed fees on ships transiting the strategic waterway. On the monetary policy front, the surge in oil prices has rekindled inflation fears and led markets to price in a more hawkish Bank of England, with traders now expecting at least one interest rate hike by the end of 2026.